HMRC has lost another high profile IR35 case to TV personality Kaye Adams.
HMRC claimed that Kaye Adams was a BBC employee while presenting BBC Radio Scotland's The Kaye Adams Programme during the 2015/16 and 2016/17 tax years and therefore should be taxed under the IR35 rules. Her company, Atholl House Productions, brought an appeal against a tax and National Insurance Contributions bill of more than £120,000.
Following the First-Tier Tribunal it ruled that Kaye Adams was a freelancer with roles outside the BBC, and did not have employee rights at the company.
The tribunal said the essential issue was whether or not if the services supplied by Ms Adams to the BBC had been supplied under a contract directly between the presenter and the BBC, Ms Adams would have been regarded for income tax purposes as an employee of the BBC.
Much of the argument centred on whether the contract as written matched what happened in actual practice, with regards to such issues as Ms Adam’s ability to provide a substitute if she was not available, mutuality of obligation, and control.
This comes weeks after HMRC suffered yet another embarrassing defeat when it tried to claim that TV presenter Lorraine Kelly was an ITV employee rather than a contractor.
This is the 5th of 6 IR35 cases HMRC has lost since it made changes to IR35 in the public sector in 2017.
The fact that HMRC continues to lose such cases, does this not demonstrate that it doesn’t understand its own legislation, so how do they expect businesses in the UK too?
How many more genuinely self employed freelancers and contractors must have to endure an IR35 case.
Click here for the full report