HMRC has recorded a rare IR35 victory after a tribunal decided that three self-employed BBC newsreaders were operating as so-called ‘disguised employees’.
HMRC won its first IR35 ruling in seven years, as former BBC presenter Christa Ackroyd lost an appeal covering tax years between 2006/07 and 2012/2013.
In Christa Ackroyd Media (CAM) Ltd vs. Revenue & Customs, HMRC successfully argued that the ‘Look North’ presenter owed more than £400,000 in income tax and National Insurance Contributions.
The win is significant for HMRC because it is the first in a string of IR35 appeals against BBC personalities.
The high profile criticism of the BBC paying over 300 people through their own personal service companies (or PSC's) continues to rumble on. People are rumoured to include Jeremy Paxman and Fiona Bruce.
Joanna Gosling is the latest BBC presenter to complain that the public service broadcaster forced her to operate through a limited company, exposing her to HMRC legal action.
Alongside BBC colleagues David Eades and Tim Willcox, Gosling is , which HMRC argues is owed in back income tax and National Insurance contributions.
HMRC claims that the presenters were within the IR35 rules and operating in ‘disguised employment’.
The court heard that the three presenters were “ ” into creating the personal service companies. These companies allowed the corporation to avoid paying employers’ National Insurance contributions and came with very few benefits.
The Commons Committee of Public Accounts has issued a Report on Off-Payroll Arrangements in the Public Sector (i.e. people working for Public bodies that are paid but not as employee).
The BBC has reported that 148 of it's on screen presenters, actors or artists have been paid through their own personal service companies (limited companies) rather than as employees.