Radio 2 presenter Jeremy Vine is the latest celebrity to be investigated by HMRC under IR35 rules, with the tax authorities prosecuting him over alleged unpaid taxes incurred while working for the BBC.
Court documents reveal that Vine has been in a dispute with HMRC since 2018 over whether he should have been classified as an employee or contractor due to his work on shows such as Eggheads and Points of View, as well as his coverage of the 2015 general election. , between 2013 and 2015. Although the exact amount Vine is owed has not been revealed, experts suggest it could be in the thousands of pounds.
Vine and his legal team attempted to challenge HMRC’s right to proceed with the case on technical arguments at a preliminary hearing in June. However, the judge rejected this argument and it is expected that the case will now be referred to the First-tier Tribunal.
Vine joins other high-profile broadcasters such as Gary Lineker, Adrian Chiles and Kaye Adams, who are also embroiled in IR35 cases. Lineker won his £5 million tax case in March, while Chiles’ £1.7 million case, which has been running for a decade, will be heard again due to legal errors in an earlier ruling. Adams won her case last year after nearly a decade of legal battles, represented by the same attorney who defended Vine.
The IR35 rules require employees who use intermediaries, such as limited companies, to have their employment status assessed for tax purposes. If they are considered contractors, they pay tax as self-employed, often resulting in lower national insurance contributions. However, if they are considered employees, they must pay higher employee tax rates.
The IR35 regime, introduced by Gordon Brown to tackle ‘disguised employees’ using contractor status to reduce tax bills, has been criticized for its complexity and impact on hiring freelancers and the self-employed sector. During his short tenure as chancellor, Kwasi Kwarteng promised to scrap the rules.
John Hood of Moore Kingston Smith commented: “IR35 has become infamous for trapping celebrities in its complexity. Even tax professionals have difficulty understanding how it should work.”
Previous IR35 cases often went from the First-tier Tribunal to the Upper Tribunal and then to the Court of Appeal, dragging on for several years.
An HMRC spokesperson said: “We appreciate that there is a real person behind every case and we strive to treat all taxpayers with respect. We strive to resolve cases as quickly and cost-effectively as possible, in accordance with the law.”
Jeremy Vine has been contacted for comment.