TV Presenter Adrian Chiles Loses IR35 Appeal, Case Remitted to First Tier Tribunal

In a significant development for IR35 cases, TV host and Radio 5 Live presenter Adrian Chiles has lost his appeal at the upper tribunal. The case, involving Chiles's personal service company Basic Broadcasting Ltd (BBL), has been referred back to the first tier tribunal (FTT) for reconsideration. If the FTT rules against Chiles, he could owe HMRC £1.7 million in tax and NICs.

The appeal centred around the application of the intermediaries' legislation (IR35) for tax years 2012-13 to 2016-17, during which BBL provided Chiles's services to two ITV contracts and three BBC contracts. The upper tribunal found that the FTT erred in its approach to determining the third stage of the Ready Mixed Concrete (RMC) test, which assesses whether a hypothetical contract would be one of employment or services.

The upper tribunal emphasised that the FTT should keep the terms of the hypothetical contracts at the heart of its analysis and consider the level and nature of control exercised over the individual. Additionally, the tribunal allowed HMRC to raise the 'knowledge issue,' which questions whether relevant factors were within the actual or constructive knowledge of the BBC and ITV.

This case highlights the complexities and challenges surrounding IR35 determinations, with Judge Thomas Scott acknowledging the "very real human cost" of the uncertainty and financial exposures faced by taxpayers and their advisers. As the case returns to the FTT, it serves as a reminder of the need for clearer guidance and a more stable legal framework for IR35 assessments.