TV and radio presenter Kaye Adams has won her IR35 case; HMRC appealed and lost it has been announced today. HMRC pursued a case against Ms Adams in relation to her contracts with BBC Radio Scotland during the 2015/16 and 2016/17 tax years, which HMRC considered to be akin to employment, and therefore inside IR35 with tax therefore owed. However in 2019 a First Tier Tribunal concluded that IR35 did not apply, partly due to additional contracts Ms Adams had with other engagers, including appearing on ITV’s Loose Women, Sky News, and writing regular columns for various outlets.
HMRC subsequently appealed the 2019 decision, and the Upper Tier Tribunal has now upheld the original decision – that Ms Adams was in business on her own account whilst engaged by the BBC, i.e. the relationship was not akin to employment. Importantly, a number of indicators could have indicated IR35 would apply, including:
- Personal service,
- Mutuality of obligation,
The presence of any of these factors alone could ordinarily indicate an “inside IR35” conclusion. However, despite the presence of these factors, Kaye Adams was found “outside IR35” because she was in business on her own account, as demonstrated by having multiple clients. Importantly, the case very clearly demonstrates the need for all factors to be taken into account when considering IR35 status. For more about IR35 status, read our article here