IR35 MOO (Your Core IR35 fail)

16/3 15:26

Mutuality of Obligation

But. Always a “but” in tax.

My understanding of MOO in IR35 HMRC terminology is more limited. It is taken to mean that the “putative employer” and the “targeted employee” are mutually obligated for the employer to provide work and the employee to do it. This is severely limited when compared to the above legal meaning.

One can quite see that HMRC would want to use the wider definition, but I think that would be rejected by the courts as being “too wide”. This means “too vague” and lacking definition for use in court cases. That legal meaning essentially uses the MOO expression to mean consideration (something to be given in exchange). To be valid, every contract has by law to have consideration and in addition to that it has to be current not “already given” (for that you would have to use a deed).

Consideration already given is known as “past consideration” and is not valid for a new contract, it has to have been current (or future) at contract agreement time. This means at time of offer and then acceptance.

Google it — the great HMRC confidence trick

They have been doing this with every aspect of taxation and misleading the public as well no doubt as politicians who they persuade to make the laws based on HMRC presentations.

True and fair ?

Tax rates

Wealth and jobs creation

Big companies are not where wealth starts, it is the small ones. The big ones are totally risk averse and spend their time blocking progress while protecting what they have created already, their ideas of risk tend to be child like and uninformed.


Accountability of HMRC?

HMRC’s mutual obligation to us?

Collect the max tax possible using all means necessary? Yes.

The right amount of tax? No chance.

Accountability? None that is apparent, ask “LCAG”.
Transparency? None. Faceless. Exactly who makes the decisions so we can counter?
Clarity? None. Most complex tax system on the planet, but HMRC places serious obstacles to getting professional help and guidance (MSC law).
Politics? Totally.

Of course everything is politics,




Hello World 40 Years a public accountant.

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