IR35 compliance expert, Qdos, has raised concerns over the treatment of taxpayers after it was revealed that presenter, Adrian Chiles, is to have his £1.7m IR35 case reheard two years after having proven his innocence.
Being contested was Chiles’ IR35 status, with HMRC of the view that the presenter worked as a disguised employee when freelancing via his limited company ‘Basic Broadcasting Ltd’ on two ITV contracts and three BBC contracts from 2012/13 to 2016/17 tax years, amongst others.
At the Upper Tribunal earlier this year, HMRC was granted the right to have Chiles’ victory at the First Tier Tribunal in 2022 reheard, after it was decided that errors had been made leading to this verdict.
This was related to how the judges applied the test of whether Chiles was in business on his own account – a key indicator of a contract that belongs outside IR35 and one that was decisive in the case initially.
If Chiles is to lose this new hearing – at another First Tier Tribunal – he will be expected to pay £1,249,433 in tax and £460,739 in NICs.
Qdos CEO, Seb Maley, said, “We see this time and time again. A freelancer proves their innocence only for HMRC to appeal and be granted another hearing. In what is yet another IR35 saga, Adrian Chiles must demonstrate that he is genuinely self-employed once more or face a £1.7m tax bill.
“It speaks volumes of a system with odds stacked against taxpayers, who can’t move on with their lives just in case HMRC is given another bite at the cherry. The worrying thing is that this all stems from a mistake apparently made by one of the tribunal judges.
“That’s not to say the Upper Tribunal necessarily think the overall decision is incorrect – just that the way in which the decision was made wasn’t correct. Through no fault of his own, Chiles is facing another incredibly stressful period.
“In recent months, a lot has been made of how taxpayers – who in many cases are innocent – are treated, whether by HMRC or the inefficient tribunal system. Adrian Chiles is another to add to this ever-growing list, after Kaye Adams, Gary Lineker, Eammon Holmes and countless others.”
