Loose Women’s Kaye Adams prevails in ten-year battle with HMRC over IR35 tax dispute

Kaye Adams, presenter of ITV’s Loose Women, has won a protracted ten-year dispute with HM Revenue & Customs (HMRC) over her employment status.

After multiple court victories, HMRC announced it would not appeal against Adams’s latest win, concluding a case that has highlighted significant criticisms of the tax authority’s approach to IR35 regulations.

The dispute centred on HMRC’s claim that Adams, through her company Atholl House Productions, should be classified as an employee of the BBC for the purposes of IR35, meaning she would owe additional taxes. Adams has maintained that she is self-employed, a position repeatedly upheld by tribunals. Last year, she secured her third victory in the First Tier Tribunal (FTT), which found she was genuinely self-employed, not a deemed employee as HMRC had argued.

In response to the latest ruling, an HMRC spokesperson commented, “Given this litigation has been ongoing for a number of years and the FTT does not set binding legal precedents, we don’t think it would be proportionate to appeal in this case.” The agency also emphasised its preference for resolving disputes outside the court system, resorting to litigation only when necessary.

Adams expressed relief at the resolution, though she sharply criticised HMRC’s handling of the case. “I am extremely pleased that HMRC has decided not to roll the dice on a fifth time lucky shot on my case,” she said. “I remain utterly horrified at the behaviour of this department. They have the power to ruin good, honest, hard-working people’s lives with no consequences. This is a pyrrhic victory for me. I have won my case against HMRC, but I have spent nearly £300,000 on legal fees—money that should have been in my pension.”

The case has underscored growing concerns about HMRC’s interpretation and enforcement of IR35 rules, which aim to distinguish between employees and contractors for tax purposes. Critics, including members of the public accounts committee, have described the agency’s approach as “heavy-handed,” particularly toward workers challenging its interpretation of self-employment criteria.

In December, HMRC’s chief executive, Jim Harra, faced scrutiny from MPs on the public accounts committee, who raised concerns about the impact of HMRC’s policies on workers. Adams’s victory is likely to add further momentum to calls for reform of IR35 and for greater fairness in HMRC’s treatment of self-employed individuals.

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Loose Women’s Kaye Adams prevails in ten-year battle with HMRC over IR35 tax dispute