Kaye Adams, presenter of ITV’s Loose Women, has won a decade-long dispute with HM Revenue & Customs (HMRC) over her employment status.
After a series of court victories, HMRC has announced it will not appeal against Adams’ latest win, ending a case that has sparked widespread criticism of the tax authorities’ approach to IR35 rules.
The dispute centered on HMRC’s claim that Adams, through his company Atholl House Productions, should be classed as an employee of the BBC for the purposes of IR35, meaning he would owe more tax. Adams maintains that he is self-employed, a position often recognized by courts. Last year, he won his third victory at the First Tier Tribunal (FTT), which found he was genuinely self-employed, not an employee as HMRC had argued.
In response to the latest decision, a spokesperson for HMRC commented, “As this case has been ongoing for a number of years and the FTT has not made any binding legal submissions, we do not think it would be equitable to appeal this case.” The agency reiterated its preference for resolving disputes outside the court system, resorting to litigation only when necessary.
Adams expressed relief at the decision, although he was critical of HMRC’s handling of the case. “I am very pleased that HMRC have decided not to roll the dice a fifth time in my case,” she said. “I am still shocked by the way this department is behaving. They have the power to destroy the lives of good, honest, hardworking people without consequences. This is a pyrrhic victory for me. I won my case against HMRC, but I spent almost £300,000 in legal fees – money that should have been in my pension.”
The case highlighted growing concerns about HMRC’s interpretation and application of IR35 rules, which aim to distinguish between employees and contractors for tax purposes. Critics, including members of the public accounts committee, have described the agency’s approach as “difficult,” especially for employees who challenge its definition of self-employment.
In December, HMRC chief executive Jim Harra faced scrutiny from MPs on the public accounts committee, who expressed concerns about the impact of HMRC policies on staff. Adams’ victory is likely to add momentum to calls for reform of IR35 and greater fairness in HMRC’s treatment of the self-employed.