Tax  

Jeremy Vine latest to face HMRC in IR35 battle

Jeremy Vine latest to face HMRC in IR35 battle
Jeremy Vine is being pursued by HMRC. (PA)

BBC presenter Jeremy Vine is the latest high profile person to face an IR35 tax battle with HMRC. 

The tax authority is pursuing Vine for work on Radio 2, election coverage, Eggheads and Points of View with the BBC between 2013 and 2015.

HMRC wants to work out whether Vine was employed by the BBC when he undertook the work or whether he was a contractor.

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The amount that Vine is being pursued for is not known.

The case is between HMRC and Vine's company Jelly Vine Productions Ltd. 

IR35 was first introduced in 2000, and set out that where an individual is working like an employee, they should pay tax like an employee, regardless of whether they were working through their own intermediary.

Dave Chaplin, CEO of IR35 compliance firm IR35 Shield said: "The Jeremy Vine case is essentially a story about how long these tax cases are taking. It is not right that someone is kept in the dark without tax certainty over engagements entered into over 10 years ago."

A preliminary hearing saw Vine's representatives argue a case should not be pursued, but this was rejected and it is expected to move to the First Tier Tribunal.

Documents from this hearing in June showed Vine disagrees with the argument that he should have been taxed as an employee for some or all of the payments made under the contracts in question.

Chaplin believes if HMRC was to lose this case it would appeal as it has done so previously.

Lee McIntyre-Hamilton, employment tax partner at Keystone Law, said the current IR35 rules are not fit for determining whether someone is employed or self-employed in the modern world of work. 

He said: "The UK employment status tests are based on case law going back many decades and are often nuanced, unclear and subjective in too many cases. Furthermore, the tests for employment status for employment law and employment rights purposes are different in some respects to those for tax, leading to further confusion. 

“Not for the first time, we have seen such cases last many years and the fact that even the courts can’t decide on the correct application of the law in a number of cases involving employment status ought to be a clear warning that the law needs changing."

In January, HMRC’s 10-year tax battle with Loose Women presenter Kaye Adams' came to an end after the tax authority revealed it would not appeal the court's decision.

Then, in April former footballer and Sky Sports presenter, Neil McCann, lost his battle with HMRC leaving him with a £210,000 tax bill.

tara.o'connor@ft.com

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