The Karate Kid

Keith Gordon discusses Ashton v HMRC [2016] UKFTT 727 (TC) which considers a worker’s employment status 

Facts of the case

The business, Karate World, provides instruction in martial arts. It was originally set up by a Mr Thompson as a sole-trader business, with a number of employees. One of those employees was Remi Ashton, the Appellant in the present case.

In October 2003, the proprietor of Karate World considered options to grow the business and converted the business to a partnership, taking on a number of his employees as partners. Again, this included Mr Ashton. Until 2011, when he left the business, Mr Ashton submitted his Self-Assessment returns as a partner and paid Class 2 contributions on that basis.