Applying mutuality of obligation to IR35

Not surprised that we find it difficult to apply MOO - so do the Revenue. Anne Redston summarises it in her book along the following lines.

If, from one day to another or from one small project to the next, the worker can decide whether or not to accept the work and the client can decide whether or not to offer the work then there is probably no MOO and the worker is not employed.

The main issue appears to be whether each contract itself can be regarded as a small contract of employment or as part of a general umbrella contract.

It's all made even more complex by the fact that IR 35 looks at a hypothetical contract. MOO seems more likely to exist where the contract is a long term one for the supply of a named individual or where the client exercises a greater level of control over the worker.

But it is an issue that may not be fully clarified until we get a suitable case.

MOO KevinM 23/05