reflection off a building


Christa Ackroyd, a BBC presenter, has lost a battle against HMRC after they ruled she was caught by IR35 legislation, leaving her a tax bill of £419,151, as reported by The Register.

The Look North presenter has lost her appeal for the tax year 2006/07 to 2012/13, meaning that she owes National Insurance Contributions and Income Tax incurring £419,151.

The UK tax tribunal ruled that her contract was caught by IR35, Intermediaries Legislation.

The case has been an eye-opener for IT contractors after the IR35 reform came into play last year, ruling that the end client, or recruitment agency would now be responsible for determining the IR35 status of contractors working for a public-sector body.

Ackroyd told the tribunal that she worked through a PSC (Personal Service Company) as recommended by the BBC, which her accountant confirmed to be tax compliant.

Tribunal Judge, Jonathan Cannan, said,

“In our view the most significant factors in the present case include the fact that the BBC could control what work Ms Ackroyd did pursuant to the hypothetical contract. It was a seven-year contract for what was effectively a full time job.

“Standing back and making an overall qualitative assessment of the circumstances we consider that Ms Ackroyd was an employee under the hypothetical contract.If the services provided by Ms Ackroyd were provided under a contract directly between the BBC and Ms Ackroyd, then Ms Ackroyd would be regarded for income tax purposes as an employee of the BBC.”

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