Application of IR35 to presenter’s television contract

Albatel Ltd was the personal service company of Stephen Smith and Lorraine Smith (professionally known as Lorraine Kelly (LK)). It agreed to provide the services of LK to ITV Breakfast for the television programmes Daybreak and Lorraine.

HMRC said LK was in effect an employee of ITV. Had there been a direct contract between her and ITV during the period of engagement it would have been a contract of service requiring the company to account for income tax and National Insurance.

The taxpayer appealed saying the nature and range of LK’s work meant she should be treated as a self-employed star.
Before the First-tier Tribunal LK gave evidence. She said she was a freelance entertainer. As well as the breakfast shows she presented radio programmes and wrote weekly columns for national newspapers. She was involved in every aspect of the television show from guests to forward planning...