Does Lorraine Kelly's IR35 case set a precedent?

In a series of contradictory IR35 case decisions, some celebrity taxpayers have come out on top as tax tribunals have ruled against HMRC over the use of personal service companies. Aidan Grant, associate, and Peter Daniel, partner at Collyer Bristow LLP, consider the latest Kelly judgment and whether the current rules need clarification

In a recent ruling, the First Tier Tribunal (FTT) found that the relationship between breakfast TV presenter Lorraine Kelly (via her personal service company, Albatel Limited) and ITV, did not fall within IR35, the anti-avoidance legislation which seeks to treat disguised employment in the same way as actual employment [Albatel Ltd and the Commissioners for Her Majesty’s Revenue and Customs, [2019] UKFTT 195, TC07045]

Under this legislation, the key determinant is whether the arrangements in place for a contractor and their client are such that the contractor would be an employee were they engaged directly.

Your free features:

Breaking news and expert analysis
Customisable daily newsletters
Six free CPD learning modules each year
Personalised CPD tracker
Top 75 Firms league tables
Regulatory changes
Hardman’s Tax Data

Tax | BlueCrest tax case: partner pay and salaried member rules

Tax | Football referees not employees in £584k tax dispute

Finance | Legal updates: unfair prejudice petitions not subject to statutory time limits

Tax | Umbrella company faces maximum £1.6m HMRC penalty

Tax | Ferrero wins VAT dispute over Nutella Biscuits

Navigate

Tax Services

Your free features:

Sign up to Business & Accountancy Daily