The case focused on the contract Ms Adams held with the BBC through her company, Atholl House Productions Ltd, during the 2015/16 and 2016/17 tax years, with HMRC taking the view that the service delivered by Ms Adams resembled employment.
The Upper Tier supported the decision made in April 2019 by the Lower Tier tribunal that Ms Adams was outside IR35. (See: HMRC loses another IR35 case to television star - April 2019, Shout99).
HMRC appealed that decision as another high-profile challenge to the working practises of a number of television presenters and journalists. In this case, the disputed tax was reported to be in excess of £120,000.
Seb Maley from IR35 tax specialist, Qdos said: “This is a timely win for all contractors, not just Kaye Adams. It shows businesses that there’s absolutely no need to make risk-averse decisions in response to IR35 reform. Firms should reverse contractor bans immediately.
“The case also demonstrates the importance of taking all factors into account when deciding IR35 status - factors such as having multiple clients, which status can evidently hinge on.
“While HMRC losing an IR35 case is nothing unusual, that the taxman was willing to go the distance indicates the Government’s determination to record a high profile victory as we close in on IR35 reform.
“It should also be noted that Adams’ engagement, like many other presenters, was vastly different from most contractors, the majority of whom are able to prove their self-employed status with ease.”
See: The full ruling of the Upper Tier Tribunal is available here: HMRC v Atholl House Productions Ltd
Further IR35 information
For more information about all aspects of IR35, including the controversial IR35 reforms see Shout99's News on IR35 section.
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Susie Hughes © Shout99 2021