News

Top TV stars to pay more tax and potentially lose some freedom in contract crackdown

Caunce O'Hara & Co Ltd Logo
Written by Caunce O'Hara
Last updated May 20, 2022

In a recent story published by The Sun1, it has emerged that ITV are set to force their top TV stars to work PAYE as part of the organization’s response to its private sector IR35 responsibilities.

According to The Sun’s article, ITV bosses have been told to treat freelance presenters as staff, therefore forcing them to work PAYE and no longer engaging freelance presenters via a personal service company (PSC).

The move will not be popular as it could potentially double the tax bills of many presenters.

Indeed, one high profile resignation has already been reported,  with Anne Robinson quitting as the host of Channel 4’s Countdown after the shows makers Lifted Entertainment (who are part of ITV Studios) said she must go PAYE1.

As a freelance presenter who operates via a PSC, you will likely pay corporation tax and then pay yourself a minimum salary plus dividends. Therefore your tax outlay will be 19% corporation tax, plus minimal income tax and National Insurance Contributions (NICs).

The move to PAYE will force many presenters to pay 40% income tax on earning between £50,271 and £150,000 per annum, plus higher NICs.

The private sector IR35 rule means that employers would be liable for paying any backdated tax rather than needing to be paid by the employees.

The move comes after IR35 reform was introduced to the private sector in April 2021. Private sector IR35 shifted the responsibility for determining a contractor’s IR35 status away from the freelance contractor to the medium or large business engaging them.

ITV said it has updated its contracting policy and “communicated the change to all those concerned”, the organization added that any assessments are conducted on a “case-by-case basis.” 2

The move hints that ITV are moving its presenters to PAYE so HMRC doesn’t challenge its existing pay arrangements, but the move does expose the organization to having to pay significant backdated tax bills.

A key issue with the move from the presenter’s perspective is that, while they would be PAYE like the organisation’s other employees, they would still not be a full-time employee, so they would not receive the same benefits and protection that employees benefit from such as sick pay and holiday pay, etc.

 

To read more stories covering private sector IR35 visit our IR35 Hub.

 

Sources:

  1. https://www.thesun.co.uk/tv/18494291/itv-stars-tax-hmrc-crackdown/
  2. https://www.contractorweekly.com/tax-a-ir35-news/itv-set-to-force-presenters-to-work-paye/

Caunce O'Hara & Co Ltd Logo
Written by Caunce O'Hara
Last updated May 20, 2022

Related IR35 content

Top TV stars to pay more tax and potentially lose some freedom in contract crackdown

In a recent story published by The Sun1, it has emerged that ITV are set to force their top TV…

Read more

IR35: Private sector firms warned of potentially large HMRC penalties on the horizon

HMRC confirmed it would take a “light touch” in regards to enforcing the new IR35 rules for the initial 12…

Read more

IR35 one year on. 60% of contractors report drop in income.

The results are in! Firstly, we’d like to say thank you to everyone who got involved in our IR35 survey,…

Read more

Contractors could be entitled to reclaim tax if IR35 is misapplied

In recent articles by ft.com and contractorweekly.com, it has come to light that HMRC has acknowledged that contractors could be…

Read more

Investigation into the IR35 reforms launched by the National Audit Office (NAO)

A recent report by the National Audit Office (NAO) has stated that Her Majesty’s Revenue and Customs (HMRC) faces new…

Read more

Seven year nightmare over for presenter Adrian Chiles as Basic Broadcasting Limited wins IR35 appeal

A positive IR35 case ruling has been made for presenter Adrian Chiles and his media company Basic Broadcasting Limited, after…

Read more

Umbrella consultation underway

The government has launched a consultation into the role that umbrella companies play in the labour market and how they…

Read more

Former SKY Sports presenter landing with heavy IR35 tax bill

Former SKY Sports presenter Dave Clark has lost his IR35 tribunal appeal against HM Revenue and Customs. The decision relates…

Read more

Blanket contractor IR35 decisions U-turn by Network Rail

Computerweekly.com recently reported that Network Rail appears to have performed a U-turn of its IR35 blanket decisions for the rail…

Read more

HM Courts & Tribunal Service becomes the third government department to be hit with IR35 tax bill

Government departments have been in the news recently for their incorrect assessments of the employment status of their contractors in…

Read more

Home Office hit with huge IR35 tax bill

It has recently emerged that the Home Office has been hit with a £33.5 million IR35 tax bill after a…

Read more

DWP hit with huge tax bill for historic IR35 contractor status assessment errors

It has emerged that the Department for Work & Pensions (DWP) was hit with a huge £87.9 million tax bill…

Read more

IR35 private sector changes to go ahead next week

Changes to IR35 in the private sector will go ahead on 6th April 2021, despite hopes for a further delay….

Read more

Kaye Adams wins case and is ruled outside IR35 due to being ‘in business on own account’

In a landmark IR35 case that will be welcomed by PSCs, but will not be widely applied, television presenter Kaye…

Read more

UK Supreme Court rules that Uber drivers are workers not self-employed

The Supreme Court’s unanimous decision should come as no surprise given that Uber’s appeal follows an Employment Tribunal ruling against…

Read more

Private sector IR35 soon to be reality

On April 6th 2021, the contractor’s worst scenario will become reality… IR35 in the private sector will finally go live….

Read more

Just 2 months left until the IR35 reform: what do contractors need to know?

On the 6th April 2021, the IR35 private sector changes will come into effect. With this date now just a…

Read more

The blanket approach to IR35

The delay in the introduction of the IR35 legislation allowed contractors and their clients extra time to prepare. It also…

Read more

IR35 news: Eamonn Holmes loses his IR35 case against HMRC

Holmes, a broadcaster for over 40 years, was providing his services through a limited company called Red, White and Green…

Read more

HMRC “kicks back” in latest IR35 case

HMRC “kicks back” at Upper Tribunal in latest win against Paul Hawksbee In July 2019 we saw the fight between…

Read more

Off-payroll working in the private sector

Despite the protests and lobbying of the Government, the only reference in the Budget notes makes it very clear that…

Read more

The impact of finance sector IR35 decisions on contractors

IR35 reform to the private sector was already having a negative impact on contractors working in the finance sector prior…

Read more

Lord’s committee expresses concerns over IR35

IR35 off-payroll reform was due to be rolled-out to the private sector on April 6th of this year, but due…

Read more

Suggestions to move IR35 reforms to 2023 are rejected

Amendments to the IR35 private sector are set to go ahead from April 2021, despite suggestions from a Conservative MP…

Read more

COVID-19 and IR35: Should your clients relax now the legislation is postponed?

Steve Barclay, the Chief Secretary to the Treasury, announced that due to the effects of Covid-19 (Coronavirus), the changes to…

Read more

11th hour delay for IR35 private sector reform due to COVID-19 welcomed

The Government has delayed its controversial IR35 private sector reform by one year, until April 2021, because of the COVID-19…

Read more

No delay to IR35 rollout as the Government launches off-payroll review

The Government launched its off-payroll review on January 7th with regards to the implementation of the changes to the off-payroll…

Read more

What are the political parties saying about IR35?

In April 2020 the contractor and freelance community are set to be hit by changes to IR35 legislation which could…

Read more

Six reasons for PSCs to be proactive to respond to the IR35 private sector changes and not wait until April 2020 to do so!

Since April 2000, the Intermediaries legislation has made the individual contractor trading through his/her own Personal Service Company (PSC) the…

Read more

What impact will IR35 reforms have on North Sea operators?

With high levels of talent engaged through off payroll structures in the energy sector, the North Sea operators will feel…

Read more

Are you ready for IR35 changes?

Proposed changes to IR35 legislation could mean thousands of contractors may pay more tax. With the Government’s consultation on contracting…

Read more

IR35 and CEST Update

The IR35 story continues to rumble on taking twists and turns along the way and most of us believe it…

Read more

U-Turn on Self-employed NIC but no change to Public Sector rules on IR35

The ink has yet to dry on Philip Hammond’s first budget as Chancellor but his proposed national insurance increases for…

Read more

IR35 Products & services

Caunce O’Hara’s partnership with Markel enables us to offer a broad range of IR35-based products to protect contractors, fee-payers and end clients across the UK.

IR35 Hub Related IR35 content