the event that they do not return a starter declaration form. It was initially thought that all deemed employees were set up on code BR, regardless of whether or not a starter declaration form was returned but it appears that this is only the case in circumstances where a starter declaration form has been provided. This seems logical as it is the same course of action that would be taken in the event that an employee (not a deemed employee) did not provide a starter declaration form. This guidance is reiterated in the ‘Operating PAYE’ section of the Employment Status Manual that was updated earlier this month.
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Eamonn Holmes has lost IR35 case against HMRC 26 February 2020
Well-known TV personality, Eamonn Holmes, who presents predominantly on ITV, has lost his IR35 case against HMRC and will be liable for up to £250,000 in tax as a result.
Mr. Holmes, who co-hosts alongside wife, Ruth Langsford on ITV’s daytime show, This Morning, argued that he was paid as a freelancer via his personal broadcasting company, Red White and Green Limited, and so did not owe tax or national insurance contributions on pay relating to the period between 2011 and 2015. He stated that, during this period he was “totally freelance” and had “total control” over how he acted as a presenter on the show. The decision at appeal level, which related to a case initially heard at the First Tier Tribunal Tax Chamber back in June 2018, by Judge Harriet Morgan was that Mr. Holmes was, in actual fact, employed by ITV, and so was liable to pay tax under IR35 rules. She said:
"I have concluded that there was sufficient mutuality and at least a sufficient framework of control to place the assumed relationship between ITV and Mr Holmes in the employment field.
On that basis and, having regard to all other relevant factors, my view is that overall, throughout all relevant tax years, the assumed relationship between ITV and Mr Holmes was one of an employment rather than self-employment."
There have been several cases recently in which HMRC has come up against individuals from within the entertainment industry, some of which it has won and others it has lost. This demonstrates how assessing whether or not a person is ‘inside IR35’ is dependent on individual circumstances, and why blanket assessments should be avoided. Christa Ackroyd, Joanna Gosling, David Eades and Tim Willcox are amongst other TV presenters who have lost their cases against HMRC. Conversely, Helen Fospero, Kaye Adams and Lorraine Kelly have claimed victory against HMRC over its off-payroll tax clampdown. The outcome of the cases has been determined based on the principles of substitution, control and mutuality of obligation, which differ based on each particular situation.
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HMRC confirms IR35 reforms will go ahead from 6 April 2020 in response to recent review 28 February 2020
HMRC has published the findings of the review it recently conducted into IR35 reforms in the private sector, giving concrete confirmation that the planned implementation date of 6 April 2020 remains unchanged.
The publication confirms several changes, made to address stakeholder concerns that were voiced over the course of the review, and to ensure smooth and successful implementation of the reforms:
• In the first year, customers will not be required to pay penalties for errors that relate to off-payroll, with the exception of cases where there has been deliberate non-compliance
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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