More freelancers might be taxed as employees after High Court ruling

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• OUT-LAW.COM

An IT contractor has been hit with a £99,000 tax bill after the High Court ruled that he should be taxed as an employee of the company he undertook work for.

Jon Bessell, 50% owner and sole director of Dragonfly Consulting, carried out work for motoring organisation AA for three years until 2003.

Bessell is an IT systems tester and worked almost exclusively for AA in the three year period, providing his services as Dragonfly Consulting via an agency for IT contractors, DPP.

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