TV presenter Mr. Eamonn Holmes lost his IR35 tax appeal against HMRC in the first tier tribunal (FTT) despite working 40 years as a freelancer broadcaster. The decision came out for the case which is concerned with Mr Eamonn Holmes personal Service Company named Red, White and Green Ltd. (RWG) which he incorporated in 2001. Later in 2006, Mr Holmes became a part of “This morning” show which he presented for about 15 years. Mr Holmes failed in his appeal due to the four engagements between his limited company “Real, White & Green Limited” & “ITV” during 2011/12 & 2014-15 tax years’ results in failing of proving his employment status as a self-employed person.
Tribunal judge “Mr. Harriot Morgan” dismisses the appeal made by Mr Holmes & concluded that “there was sufficient mutuality of obligation and at least a sufficient framework of control to place the assumed relationship between ITV & Mr. Holmes in the employment field”. There were 4 contracts signed between the broadcaster & Mr Holmes during that period. As per the terms and conditions specified in the contract, RWG needed to obtain services from Mr Holmes on an exclusive basis within the period or dates specified and agreed with the executive producer.
The specified dates included the following
TV Presenter Mr. Holme’s interpretation
Also Read: What is IR35?
What Holme’s lawyer “Mr. Robert Maas” says?
Mr Holme’s lawyer Mr. Robert Maas argued in the tribunal on the following points –
HMRC’s reaction on Judgement
HMRC welcomes the decision taken by Mr. Judge Harriot Morgan and praises themselves in taking the right approach. HMRC said that as per the tax rules, employment taxes should be paid even when a person works through their own company.
Judge “Mr. Harriot Morgan” Judgement
Judge Harriot Morgan concluded the case on the basis of the following points mentioned below –
Also Read: IR35 Compliance
Out of the 8 presenters, 5 presenters have already lost their cases against HMRC. Lorraine Kelly and Helen Fospero are the only two presenters who have successfully defended their case and are in the winning league. After working as a freelancer for many broadcasting companies from last 4 decades, it’s surprising to hear that Mr Holmes lost his case and found himself within IR35 tax rules & regulations.
Although the broadcaster cases have been similar, the decision taken by Mr. Judge Harriot Morgan is different then the approach taken in other cases. We are unable to grasp this as it’s difficult to understand why similar rules have not been applied to other presenters in the prior cases. Many of these cases are forwarding to upper tribunals – Let’s see whether it will provide some more clarity in the law or remain as the part of legislation which no one properly understands.
Any questions? Schedule a call with one of our experts.