Several high profile TV presenters have been under the spotlight in respect of whether IR35 applies to their working arrangements. The latest of these resulted in a loss for HMRC. So what can we learn from this case?
Rejecting HMRC’s assertions that IR35 applies to working arrangements has been something of a mixed bag for TV presenters. Lorraine Kelly and Kaye Adams both won their cases; but others, including Eamonn Holmes, have lost theirs.
The latest case to be heard was that of Adrian Chiles (AC), the sports presenter.
The First-tier Tribunal (FTT) disagreed with HMRC’s claim that AC was an employee (in all but name) of both the BBC and ITV. The Tribunal held that AC was in business on his own account via his limited company, based on the fact that he had several clients for whom he worked. He had also been involved in a number of unsuccessful commercial ventures, showing that he had taken on substantial financial risk. The FTT also gave less importance to the issue of ‘substitution’, i.e. that AC did not have the right to provide a substitute if he were unable to perform his duties.
The FTT took a “big picture” approach and concluded that the arrangements with both the BBC and ITV were part of AC’s business, and not part of an arrangement to which IR35 should apply. Of course, FTT decisions are not binding and HMRC may well appeal. However, it does show that negative media coverage of these high-profile cases should not be taken at face value.
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