In the latest IR35 dispute between a celebrity and HMRC, media and sports presenter Adrian Chiles has cleared the first hurdle in his battle against HMRC's insistence that his working arrangements with ITV and the BBC amounted to an employer-employee relationship in all but name.
The First-tier Tribunal ruled that, considering all factors, Mr Chiles was clearly building a business via his company (Basic Broadcasting Ltd). It then considered whether his activities with the BBC and ITV would lead to a conclusion that Mr Chiles was in business in his own right in the absence of the company. It held that this was the case, and the appeal was upheld.
However, it is likely that HMRC will appeal against this decision given the reported size of the tax at stake – a combined income tax and National Insurance bill of £1.7m for the years 2012 – 2017.
As we’ve seen in other high-profile cases, the Tribunal, having reviewed a range of factors, concluded that there was ‘mutuality of obligation’ in the arrangements between Adrian Chiles and the two broadcasters. It also determined that the contracts gave little opportunity for the broadcasting companies to control or direct the presenter’s work. Both mutuality of obligation and control are key factors in deciding whether IR35 legislation applies in any given case.
For further information and case studies about IR35, please visit the IR35 Legislation Advice Hub on our website. If you have a question about IR35 please drop me a line at martin.johnson@torgersens.com.
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