IR35 defeat goes to appeal in High Court

The High Court will hear an appeal into the IR35 case of Dragonfly Consultancy Ltd. today (Friday June 6).

Dragonfly, based in Wiltshire, specialises in IT testing services. It lost its IR35 case before the Special Commissioners in January 2008, leaving its co-owner, Jon Bessell, facing a tax and NIC bill of £99,000.

The Professional Contractors Group (PCG) is funding the appeal by Dragonfly.

The PCG said: "Tax experts are watching this case with interest. If the appeal is rejected, the ruling could undermine much of the successful defence against IR35 established by PCG in numerous cases since IR35 came into force."

A ruling is not expected until mid-summer.