Tyler Security Limited v The Commissioners for HMRC

Facts

Tyler Security Limited supplied specialist dog-handlers, referred to as contractors, to end-clients. HMRC made a determination under regulation 80 of the Income Tax (Pay As You Earn) Regulations 2003 on 11 March 2022 for the 2017-18 tax year, assessing £133,615.60, later reduced to £88,503.70 on review. The basis was that the agency legislation in sections 44 to 47 of the Income Tax (Earnings and Pensions) Act 2003 applied to the contractors. The First-tier Tribunal (Tax Chamber) heard the appeal on 15-17 July 2025 and dismissed it, releasing its decision on 16 October 2025 ([2025] UKFTT 1250 (TC)). The company applied to the FTT for permission to appeal on 10 December 2025, and the FTT refused permission on 6 February 2026. The company renewed its application to the Upper Tribunal on 5 March 2026, and the Upper Tribunal refused permission in a decision notice dated 22 June 2026. The company then applied under rule 22(4) and (5) of the Tribunal Procedure (Upper Tribunal) Rules 2008 for reconsideration at an oral hearing, which took place on 21 September 2026. Six grounds were advanced, concerning personal provision of services, supervision, direction or control, best judgment, remuneration and the absence of tax avoidance.