Dragonfly defeat: 'Shock' and 'massive blow'

Freelancer trade group, the Professional Contractors Group (PCG) has expressed its shock at the High Court's judgment in the "Dragonfly" IR35 case and expressed concern that HMRC's victory threatens the long-established defences against IR35.

PCG member Jon Bessell, the owner of Dragonfly Consultancy Ltd, lost his appeal to overturn a tax demand for £99,000. Speaking after the judgment was delivered, Mr Bessell said:"I am devasted 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 and funded Mr Bessell in bringing his appeal because of what were considered the potential wider implications of the case.

PCG's managing director John Brazier 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."