Who is Lorraine? - HMRC Asks

 

It seems that Boris isn't the only one to ask who is Lorraine, at least in terms of whether she and her fellow "celebs" are employees or self employed artistes.

The Birmingham Mail reports that ITV stars are set to lose a fortune in a tax crackdown - with some paying twice as much.

ITV This Morning stars, ITV Good Morning Britain stars and ITV Loose Women stars are now being treated as staff on PAYE - not employees who pay via service firms. Reports say it could mean tax bills double for some.

A source said to the Sun newspaper: “It’s caused chaos at ITV and meant a total overhaul of the stars’ payment system.” In 2019, Lorraine Kelly escaped a £1.2 million tax bill after winning a legal battle with HMRC.

Lorraine became embroiled in a spat with tax authorities in 2016 after they tried to make her hand almost £900,000 in income tax and more than £300,000 in national insurance. The Scottish TV presenter argued that she's freelance and not an employee of ITV, while HMRC bosses claimed she had signed a contract with the broadcaster back in 2012 to present Daybreak and her Lorraine show.

She won that one then.

Tax does have to be taxing.

Tax Investigation Insurance

Market leading tax fee protection insurance for businesses, sole traders and individuals. Protect yourself from accountancy fees in the event of an HMRC enquiry.

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountant's (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your accountant (your tax return agent) to:

• Deal with any correspondence from HMRC
• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
• Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

HMRC Disappointed With Lorraine Kelly Ruling

Lorraine Kelly has won an appeal against HMRC over a £1.2m tax bill, after a judge ruled she was not employed by ITV, but performs as her "chatty" TV persona.

Kelly received the national insurance and income tax bill from HMRC in 2016.

HMRC claimed that she was an ITV employee, but she said she was a freelancer.

The judge ruled in Kelly's favour that she was a "self-employed star".

The BBC reports that the case centres on a contract that Kelly signed in 2012 - through a company she runs with her husband - to present Lorraine, as well as her former show Daybreak which ended in 2014 when Good Morning Britain was relaunched.

Four years later, she was sent a bill of nearly £900,000 in income tax and more than £300,000 in national insurance contributions.

Kelly appealed against tax authority HMRC, and the case was heard by the first-tier tax tribunal.

Judge Jennifer Dean ruled that the relationship that Kelly had with ITV "was a contract for services and not that of employer and employee".

The tribunal found that Kelly did not receive staff benefits such as holiday or sick pay and was allowed to carry out other work.

The judge said that Kelly could be classed as a "theatrical artist", which would mean any payments to an agent would be allowed as a tax-deductible expense.

Judge Dean said:

"We did not accept that Ms Kelly simply appeared as herself - we were satisfied that Ms Kelly presents a persona of herself, she presents herself as a brand and that is the brand ITV sought when engaging her.

All parts of the show are a performance, the act being to perform the role of a friendly, chatty and fun personality.

Quite simply put, the programmes are entertaining, Ms Kelly is entertaining and the 'DNA' referred to is the personality, performance, the 'Lorraine Kelly' brand that is brought to the programmes.

We should make clear we do not doubt that Ms Kelly is an entertaining lady but the point is that for the time Ms Kelly is contracted to perform live on air she is public 'Lorraine Kelly'.

She may not like the guest she interviews, she may not like the food she eats, she may not like the film she viewed but that is where the performance lies."

A spokesman for HMRC said it was "disappointed" with the ruling.

"We will carefully consider the outcome of the tribunal before deciding whether to appeal."

Hey Hoh, the show must go on!

This Lorraine Kelly tax case really has holed HMRC's IR35 and CEST test below the waterline. It should sink without trace https://t.co/B5l2nHhFzu

— Paul Lewis (@paullewismoney) March 21, 2019

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"