This case featured another judgment in a group of cases which arose out of schemes which were designed to enable self-employed individuals to avoid the obligation to pay income tax and national insurance on their remuneration.

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The company's problems began with HMRC assessing it for income tax and NIC for around £2.2 million. The company went into creditors' voluntary liquidation without making payment or appealing.

The judge in the High Court accepted that “HMRC undoubtedly has a duty to collect tax which is due,” but questioned whether HMRC could have ‘interests’ for the purposes of section 423(3)(b) Insolvency Act 1986 which were affected by arrangements which lawfully reduced or prevented tax arising.