Contractor both inside and outside IR35 at same workplace

An unprecedented ruling has seen a freelance consultant working in Bristol declared to be both outside and inside the IR35 regulations at a single workplace.Bristol Tax Tribunal deemed that John Spencer had initially not been under 'disguised employee' status for the first three years of a particular contracts, but then fell under the legislation for the subsequent four years of the work. The tribunal said that the IT expert - who has traded as a limited company for nearly two decades - was the first person to have been considered a split case under IR25. Speaking to the Freelance UK website, tax expert, Paul Mason, said that there were no other records of situations like the one in which Mr Spencer now finds himself."I've not heard of a case like this because normally your status is your status; you're either one thing or the other but not both," Mason said. "However I can see sense in what the judge said [to Mr Spencer]: 'Up to a point you were doing specific bits of work and projects, after that point you were really no different to being a permanent employee.'"Kate Cottrell, who is currently working on the IR35 review at the Office of Tax Simplification, said that the situation indicated the importance of considering the status of every contract. She explained, "It clearly highlights the need to consider IR35 for each and every contract, [at both] extension and renewal."

http://www.50percenttax.co.uk/index/2012/1/9/contractor-both-inside-and-outside-ir35-at-same-workplace.html