The latest legal case suggests that the courts are becoming more sympathetic to married IT contractors working together.

In Patmore versus HMRC, the judge determined that dividends paid by David Patmore to his wife and business partner did not constitute a "settlement" under the Section 660a tax legislation.

This saw HMRC's claims for almost £20,000 in additional taxes dismissed, according to Contractor Calculator.

The website notes that although this case worked in favour of the individual, it is clear that HMRC continue to apply settlement legislation to husband and wife businesses.

"Clearly, contractors who share business risk with their spouse from the outset have an increased chance of beating any Section 660a investigation by HMRC," it stated.

Andy Vessey of Qdos consulting recently warned that IT contractors must take care to use the correct terminology in their employment contracts.

He explained that even mentioning the word 'bonus' is likely to generate an IR35 investigation from HMRC.