What does Adrian Chiles’ IR35 tax battle mean for the self-employed?
The pressing need for freelancers and contractors to take proactive steps to protect their self-employed status has been highlighted by broadcaster Adrian Chiles’ ongoing battle with the taxman.
Earlier this year, a judge ruled that the TV presenter is to face a fourth tribunal hearing in a ten-year-long, £1.7 million dispute over two bills issued by HMRC under rules which apply to IR35 off-payroll contractors.
During this time, between April 2012 and 2017, Mr Chiles worked for both the BBC and ITV through his company, Basic Broadcasting Limited.
Now the courts must reach a conclusion as to whether this work was on a self-employed or employed basis with Mr Chiles facing a giant tax bill if he fails to finally prove he was genuinely self-employed.
What does the IR35 ‘off-payroll’ rule mean?
This rule governs the status of self-employed people providing services through intermediaries like limited companies and was introduced by Gordon Brown to tackle tax evasion.
Key to this, is the distinction between freelancers and employees with a lack of clear legal definitions leaving contractors potentially at risk of tax disputes and litigation.
HMRC, which argues that some people claim to be self-employed when they are effectively employees, has been keen to crack down on the misuse of ‘off-payroll’ IR35 rules for some time.
As well as Mr Chiles, presenters Kaye Adams, Gary Lineker and Lorraine Kelly have all ended up in IR35 combat with HMRC.
How do you protect your self-employed status?
As calls for legislative clarity mount, there are certain steps the self-employed can take to keep their self-employed status safe, including:
- Making sure you work for a number of different clients and not just one.
- Showing you are independent and in charge of how and where you work.
- Investing in professional development, having your own business insurance and using your own software.
- Advertising your own business as your own.
However, the way in which the self-employed are classified for tax purposes remains a controversial and complex area of the law.
Get in touch
Wards Solicitors is recommended in the independent Legal 500 guide for 2025 for its outstanding professional service standards and high levels of expertise amongst its lawyers.
Our specialist Employment Lawyers can provide clear guidance on any issues relating to IR35, working with your individual circumstances to provide a bespoke solution to protect your interests and help you navigate the complexities of the IR35 system.
Please contact any member of the Employment Team for more information.