Popular TV presenter Eamonn Holmes has lost his appeal against a tax ruling that he should have paid millions of pounds in taxes on his earnings as a freelancer. The decision, which was made by the Upper Tribunal in London, is expected to have major implications for freelance workers in the entertainment industry. In this article, we will explore the details of the ruling, its potential impact on the industry, and what it means for freelance workers like Holmes.
Popular TV presenter Eamonn Holmes has lost a legal challenge against a tax ruling that requires him to pay tax as an ITV employee for his work on This Morning. The ruling, made by Upper Tribunal judges, upheld a previous decision and dismissed Holmes’ claim that he should be taxed as a freelancer. The decision means that the journalist should pay income tax and national insurance under the off-payroll working rules. The case was brought against HMRC over the income tax levied on the money which ITV paid to Holmes’ company, Red, White and Green Limited between 2012 and 2015.
In a judgment given on Wednesday, Mr Justice Mellor and Judge Jonathan Canna said that they were satisfied that the First Tier Tribunal had considered “the overall picture” of the case. They added that they were not convinced by Mr Holmes’ lawyers’ assertion that the tribunal had overlooked characteristics “which might have indicated that the ITV contracts were part of Mr Holmes’ self-employed business activities.”
During the hearing, the judges noted that Mr Holmes had declared “profits from self-employment included on his tax returns” from 2011 to 2015 of “between £169,371 and £348,286.” Holmes, who joined GB News as an anchor after leaving This Morning, faced a demand from HMRC to pay tax as an ITV employee, rather than as a freelancer due to his contract with the channel.
Mr Holmes presented This Morning alongside his wife Ruth Langsford every Friday for 15 years until announcing his departure in November 2021. The journalist has been a prominent media personality for over thirty years, presenting numerous television and radio shows. He is widely known for his work on daytime television shows, including GMTV, Sky News, and ITV’s This Morning, which is one of the most popular daytime shows in the UK.
Off-payroll working, also known as IR35, is a tax rule that seeks to ensure that those who work as employees for a company pay the same amount of tax as those who are directly employed. Under IR35, if an individual has a contract directly with a company, they are classified as an employee, and are therefore required to pay income tax and national insurance contributions. However, if an individual is acting as a freelancer or self-employed, they are not subject to these rules.
In recent years, there has been a significant increase in the number of legal challenges against IR35, with many individuals arguing that the rules are unclear and overly complex. In 2021, the UK government implemented changes to IR35 rules in the public sector, which led to significant changes for contractors working for public bodies. The changes required public sector bodies to determine whether a contractor was an employee or self-employed, and to deduct income tax and national insurance from their payments if they were deemed to be an employee.
The ruling against Holmes highlights the complexities of self-employment and IR35 tax rules, and indicates that individuals must be aware of the rules and regulations if they want to avoid disputes with HMRC. In addition to this, the case also highlights the importance of careful financial planning for those who work as freelancers or self-employed individuals. Ultimately, the case serves as a reminder that it is essential to seek professional advice to mitigate any potential tax liabilities, and that the penalties for non-payment of tax can be severe.
