It has been decided that several people who were working with JL Windows and Doors were actually working for themselves. While the Special Commissioner, John Clarke did say that they were only barely working on their own he also noted that they should not be thought of as employees of the window company. The case began over a disagreement over the employment status of the workers in question with regards to the Construction Industry Scheme, or CIS.
The Littlewood family, which owns JL Windows and Doors, claimed that anybody who was working with their company was a contractor and not an actual employee of the company. These same workers have said that they were actually employees. The amount of National Insurance Contributions and income taxes that the workers owed would vary depending on their actual employment status.
Mr Littlewood said he would use the workers’ CIS cards to determine if they were actually self-employed or not. From there he would reduce the workers’ income by 18% to account for deductions owed to HM Revenue and Customs.
Clarke said “Although there was mutuality of obligation in the separate contracts, JL Windows did not exercise a sufficient degree of control over the workers to make itself master.” He also added that “I do not find the other provisions of the contracts consistent with their being contracts of service. I find that the workers were in business on their own account, albeit in a modest way.”