Kaye Adams, presenter of ITV’s Loose Women, has won a protracted, decade-long dispute with HM Revenue & Customs (HMRC) over her employment status.
After multiple court victories, HMRC announced it would not appeal Adams’ latest victory, concluding a case that has highlighted significant criticism of the tax authorities’ approach to IR35 regulation.
The dispute centered on HMRC’s claim that Adams, through her company Atholl House Productions, should be classified as an employee of the BBC for the purposes of IR35, meaning she would owe additional tax. Adams has insisted she is self-employed, a position repeatedly upheld by tribunals. Last year she won her third victory in the First Tier Tribunal (FTT), in which she was found to be genuinely self-employed, and not a deemed employee, as HMRC had argued.
Commenting on the latest ruling, an HMRC spokesperson said: “Given this legal case has been ongoing for a number of years and the FTT does not set binding legal precedents, we do not believe it would be proportionate to appeal this case.” The agency also emphasized its preference for resolving disputes outside the legal system, and only resorting to litigation when necessary.
Adams expressed relief at the resolution, although she sharply criticized HMRC’s handling of the case. “I am extremely pleased that HMRC have decided not to roll the dice on a lucky fifth shot on my case,” she said. “I remain completely shocked by the behavior of this department. They have the power to ruin 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 on legal fees – money that should have gone into my pension.”
The case has highlighted growing concerns about HMRC’s interpretation and enforcement of the 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 “heavy-handed”, especially towards workers who question its interpretation of the self-employed criteria.
In December, HMRC CEO Jim Harra was criticized by MPs on the Public Accounts Committee, who raised concerns about the impact of HMRC’s policies on employees. Adams’ victory is likely to give further impetus to calls for reform of IR35 and for greater fairness in HMRC’s treatment of self-employed people.