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Shock IR35 decision on Dragonfly leaves freelancers reeling

Judith Tydd, Accountancy Age, 05 Sep 2008

Dragonfly case comes to an end and the verdict could hit thousands of contractors across the UK

The Professional Contractors Group (PCG) has expressed shock at the High Court’s decision in the 'Dragonfly' IR35 case.

The industry body represents freelancers across the UK, and the unsuccessful attempt to overturn a tax demand for £99,000 leaves many in doubt.

Jon Bessell, owner of Dragonfly Consultancy Ltd and a member of PCG, said he was devastated by the High Court's ruling.

'Not only does it affect my family and me, but all the other freelance professional consultants who are trying to earn an honest living. I was never an employee of the AA and I simply cannot understand how the High Court has reached its decision. It’s a travesty of justice,' he said.

John Brazier, managing director of PCG, said this is a potentially massive blow to freelancers throughout the country.

'This case threatens the long-established defences against IR35; we will be looking at the judgment in very close detail to work out its full implications,' he said.

Further Reading:

www.pcg.org.uk/ir35

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