A recent IR35 case found in favour of the taxpayer (as most IR35 cases do).  This time the tribunal found that whilst there was an expectation of ongoing work and payment there was no legal obligation that this would be the case, and indeed there had been instances of projects ending abruptly and payments to the personal services company being stopped.  This meant there was no “mutual obligation” and therefore the contract was not similar to one of employment.  For IR35 to apply there must be mutual obligation, control resting with the payer or end user, and no unfettered right of substitution.

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