Kay Adams, presenter of ITV’s Lose Women, has won a decade-long dispute with HM Revenue & Customs (HMRC) over her employment status.
After several court victories, HMRC announced it would not appeal against Adams’ latest win, ending a case that had highlighted significant criticism of the tax body’s approach to the IR35 regulations.
The dispute centered on HMRC’s claim that Adams, through her company Atholl House Productions, should be classed as a BBC employee for IR35 purposes, meaning she would owe additional tax. Adams has maintained that she is self-employed, a position that has been repeatedly upheld by the courts. Last year, she won her third win at the First Tier Tribunal (FTT), which found she was truly self-employed, and not an employee as HMRC had argued.
In response to the latest ruling, an HMRC spokesperson commented: “Given that this litigation has been ongoing for several years and that the Financial Transactions Act does not set binding legal precedents, we do not believe it would be proportionate to appeal this case.” The agency also confirmed its preference to resolve disputes outside the court system, and not resort to litigation except when necessary.
Adams expressed her satisfaction with the decision, although she strongly criticized 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 remain absolutely appalled by the behavior of this department. They have the ability to ruin the lives of good, honest, hard-working people with no consequences. This is a Pyrrhic victory for me. I won my case against HMRC, but have spent almost £300,000 On legal fees, which is the amount that should have been in a pension.”
The case has highlighted growing concerns about HMRC’s interpretation and enforcement of IR35 rules, which are intended to distinguish between employees and contractors for tax purposes. Critics, including members of the Public Accounts Committee, have described the agency’s approach as “abusive”, particularly towards workers who challenge its interpretation of self-employment standards.
In December, HMRC chief executive Jim Harrah faced scrutiny from MPs on the Public Accounts Committee, who raised concerns about the impact of HMRC’s policies on workers. Adams’ victory is likely to add further momentum to calls for reform of IR35 and for greater fairness in HMRC’s treatment of self-employed individuals.