MV Promotions Ltd and another v Telegraph Media Group Ltd and HMRC

In MV Promotions Ltd and another v Telegraph Media Group Ltd and HMRC [2020] EWHC 1357 (Ch) (29 May) the High Court rejected a claim to rectify a contract for services with adverse tax consequences that was mistakenly entered into with an individual rather than his company.

In 2008 MVP and TMG entered into a three-year contract under which MVP provided the services of former cricketer Michael Vaughan to TMG as a cricket correspondent. In 2011 the parties agreed to extend the arrangement and a new four-year contract was signed. The new contract in the form of a letter began ‘Dear Michael’ and was stamped at the end of the letter ‘Agreed: Michael Vaughan’ and then signed by Mr Vaughan’s agent. The claimants acknowledged that the ‘body’ of the contract read like a contract for services addressed to an individual. Payments under the new...