High Court judgment could spell tax disaster for freelancers
High Court judgment could spell tax disaster for freelancers

The Professional Contractors Group (PCG), which represents the UK’s freelancers, has expressed its shock at the High Court’s judgment in the “Dragonfly” IR35 case.

PCG member Jon Bessell, the owner of Dragonfly Consultancy Ltd, has failed to overturn a tax demand for £99,000. Speaking after the judgment was delivered, he said: “I am devastated by today’s news; 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.  I would like to thank all those who have supported me through this case, in particular the Professional Contractors Group which has been superb throughout.”PCG supported Mr Bessell in bringing his appeal because of the potential wider implications of the case.  Commented PCG’s managing director John Brazier: “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.”

PCG will be publishing further guidance on the consequences of the judgment shortly. Freelancers should visit the PCG website, https://www.pcg.org.uk/policy/IR35, for further information.

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