UT/2023/000018 - [2024] UKUT 00165 (TCC)

Mr Adrian Chiles is a well-known television and radio presenter. During the period from 6 April 2012 to 5 April 2017, with which this appeal is concerned, Mr Chiles supplied his services to ITV and the BBC through his personal service company, Basic Broadcasting Limited (“BBL”). HMRC issued determinations in respect of income tax and notices of decision in respect of national insurance contributions (“NICs”) to BBL for the tax years within that period. The determinations and decisions were made on the basis that the relevant contracts fell within the intermediaries legislation (commonly known as “IR35”), and that Mr Chiles’ status for the purposes of that legislation was that of an employee. As a consequence, BBL was liable to income tax of £1,249,433 and NICs of £460,739.

BBL appealed against the determinations and decisions to the First-tier Tribunal (Tax Chamber) (the “FTT”). The appeal was heard in November 2019, but, most unfortunately, the judge contracted Covid and suffered from long Covid, which prevented her from writing the decision. By agreement with the parties, the appeal was partly reheard by a different FTT panel in November 2021.

In a decision released on 9 February 2022 (the “Decision”), the FTT allowed BBL’s appeal. HMRC now appeal against the Decision.

HMRC and BBL were represented before the FTT by the same counsel as in this appeal. We are grateful to all counsel for their clear written and oral submissions.