HMRC's 'war' on TV presenters: Charlie Stayt becomes latest star facing battle after Lorraine Kelly,...
They are easily identifiable individuals in the United Kingdom, showcased on countless screens across the nation on a daily basis.
More and more famous television hosts are being pursued by the government for large amounts of money owed in taxes, resulting in drawn-out legal disputes that are highly visible.
Charlie Stayt, a presenter on BBC Breakfast, is the latest broadcaster to be under the radar of HMRC. He and his wife Annie Breckell were notified on Monday that they have been served with a bankruptcy petition for their company.
Following a set of unfortunate events, tax-related court cases have involved well-known personalities such as Lorraine Kelly, Gary Lineker, Kaye Adams, and Eamonn Holmes in recent years.
Kelly, Lineker, and Adams were ultimately victorious in their disputes with HMRC. However, Holmes suffered defeat and was compelled to sell his residence in order to meet his obligations.
According to tax specialists who spoke with MailOnline, HMRC has been actively targeting well-known personalities in the entertainment industry lately, with the aim of making an example of them and warning others to comply with tax regulations.
Charlie Stayt, who was seen sitting beside Naga Munchetty on the BBC Breakfast sofa, is going to have to confront HMRC as he has been issued with a bankruptcy notice.
The company Stayt Limited has Annie and Charlie mentioned on their list of directors, and they are accompanied by Hogbens Dunphy Secretaries, which is an accounting and tax consulting business that operates from the heart of London.
According to reports, Stayt is currently having issues with HMRC regarding his business, Stayt Limited. Stayt runs the company alongside his wife Annie, and Hogbens Dunphy Secretaries, a tax consulting firm situated in the heart of London is also listed as a director.
Charlie Stayt: The Breakfast TV Regular
Charlie Stayt began his profession at ITN back in 1995, and then proceeded to work at Five News. During his time with the company, he worked his way up to become the host of their prime-time bulletins.
Having a private schooling background, he attended The King's School in Gloucester. He left the school merely three years before the famous actor Simon Pegg enrolled in 1974.
He began his profession at a commercial radio channel in the city he comes from called Gloucester. Later, he shifted to being the anchor for the news program in London for Capital Radio.
He started working in television in 1995 with ITN. After that, he became a reporter for Five News before moving on to presenting the network's important news bulletins along with half-hour live debate programmes.
He was the main presenter for their reporting of the September 11th terrorist attacks and the festivities surrounding the turn of the new millennium. Later on, he became employed by Sky News.
In 2006, he became a co-host on Breakfast where he worked with renowned personalities such as Naga Munchetty and Susanna Reid. In April 2022, he stepped up as the primary weekday presenter after Dan Walker departed from the show.
Although his co-stars have moved nearer to Media City, Salford, Manchester, where the BBC program is aired, the celebrity has decided to stay put down South.
The company defines itself as an entity that engages in "television program and broadcasting activities". As per the records submitted in December, it had a debt of £6,409.
Submitting a formal request may pose a risk to their peaceful and perfect family existence.
The pair purchased their residence in Twickenham back in 2002 for a grand sum of £800,000. Nowadays, it has experienced a significant increase in worth, reaching an impressive value of up to £2.3 million.
The couple has been united for over two decades and has a pair of adult offsprings named Pheobe and Jake. As per the statement presented by Hello!, it is assumed that they are still residing with their folks.
According to Seb Maley, who is the head of Qdos, a compliance specialist in IR35, HMRC has been targeting well-known presenters and insisting on them paying a considerable sum in taxes in recent times.
He further stated: 'A possible idea is that the aggressive behavior of HMRC towards high-profile individuals can serve as a warning to others regarding the significance of following the laws. However, it might come across as a manipulative approach.'
At the moment, we're not certain about the specifics of Charlie Stayt's tax costs. However, it's important to note that he's worked as a staff member at the BBC for quite some time. So, it's doubtful that his expenses are related to IR35.
However, his struggle with HMRC is definitely part of a pattern of tax authorities investigating the financial matters of presenters.
The Stayts' altercation with the revenue department is dissimilar to other recent confrontations between HMRC and television hosts.
The government department went after different hosts claiming they did not fulfill their tax obligations.
Some big names, including Gary Lineker, Lorraine Kelly, Kaye Adams, and Eammon Holmes, were accused of not paying their fair share of taxes and faced criticism. The amount they were accused of underpaying added up to millions of pounds.
In spite of being supported by the entire government, HMRC has had varied outcomes, as shown by Lineker, Kelly, and Adams winning their cases against the tax authority, which often took several years.
The government is taking action against tax avoidance through the use of IR35, a law created to prevent disguised employees from avoiding taxes by invoicing their services through limited companies.
The regulations state that any contractors who fail to meet the HMRC's classification for being self-employed will be taxed at a comparable rate as regular employees.
Mr. Maley stated that these presenters typically work as freelance workers in some form, and the HMRC is looking into their adherence to IR35 regulations. This refers to whether or not these presenters are truly independent contractors or should be classified as regular employees and therefore subject to employment taxes.
It must be emphasized that most freelancers adhere to the rules and regulations, and they are not trying to avoid paying taxes or doing anything illegal under IR35. The reason why HMRC is closely monitoring IR35 is that it is a complicated piece of legislation that can be interpreted differently in some cases. It's not uncommon for a misapplication to occur.
The IR35 cases can bring about enormous tax debts that can add up to millions of pounds. Nevertheless, even with HMRC's most diligent attempts, many of these presenters have managed to show their innocence. Gary Lineker, Lorraine Kelly, and Kaye Adams are just a few of those who have confirmed that their operations were in line with regulations.
The presenter of Match of the Day, Lineker, was pursued by tax officials who believed that he should have paid £4.9 million on the money he earned from 2013 to 2018.
The individual in charge of tax stated that Lineker should have been categorized as an official member of the BBC and BT Sport team due to his role as a presenter, not an independent contractor.
During the events, the individual who was leading it made it clear that he, at 62 years of age, had duly paid all the taxes on the revenue earned through a joint venture with his former spouse, Danielle Bux, which they created back in 2012.
The tax authorities informed Gary Lineker that his position as presenter for both BBC and BT Sport ought to have been that of an employee, not a self-employed person. However, he was victorious in his legal battle. This picture shows Lineker outside his London residence during the month of March in 2023.
The host of Match of the Day was hounded by the tax officials for a sum of £4.9 million, but they were unable to win the case as the judge stated that he was working as a self-employed individual. The photo shows Lineker at the National Theatre on May 1, 2024.
In court, a judge in charge of taxation supported his stance and declared that the IR35 law wasn't relevant as the presenter had signed contracts with the BBC and BT Sport without any intermediaries involved.
The court ruled that IR35 legislation applies to Gary Lineker's media company, GLM, which he established with his former spouse in 2012. Despite this, the court rejected the appeal entirely on the grounds that contracts were present.
Judge John Brook said in March 2023 that Mr. Lineker had signed the 2013 BBC Contract, the 2015 BBC Contract, and the BT Sport Contract directly with the BBC and BT Sport as the main contractor according to the law.
Therefore, the intermediaries law does not apply in situations where the worker is directly contracted by the client to provide services.
Mr Lineker worked for the BBC and BT Sport through personalized agreements.
While it may seem like my previous findings that the intermediaries legislation can be used for partnerships contradict this statement, that's not actually true.
During the court proceedings, James Rivett KC, who represents Lineker, claimed that HMRC has a practice of targeting media personalities. He further went on to condemn the HMRC lawyers for mocking the idea that their investigations had any political motives.
According to him: 'This laughter is merely a facade. My customer has been unfairly accused in the press of failing to pay their income tax, even though they have indeed paid it.'
When asked about the situation, a representative from HMRC stated, "The tribunal has validated that partnerships are subject to the off-payroll regulations, which aligns with our prior communication. Nevertheless, we differ in opinion regarding the ruling that the regulations cannot be implemented in this particular event and will contemplate the option of appealing the decision."
As responsible citizens, it is incumbent upon us to guarantee that every individual pays the appropriate amount of taxes as mandated by the law, irrespective of their economic status or societal position.
Lineker's situation occurred subsequent to television presenter Lorraine Kelly successfully resolving her own conflict with the revenue service, which involved allegations of exploiting the same supposed loophole.
HMRC pursued the Scottish TV presenter for a sum of £1.2 million. The authority argued that the presenter should have been regarded as an ITV worker, and therefore should have had to pay income tax and National Insurance contributions.
Lorraine Kelly discussed her tribunal case about her taxes in 2019 and expressed that she didn't want others to think that she was attempting to evade payment of her rightful taxes.
In 2021, the Scottish television presenter garnered media attention for her victory over HM Revenue & Customs (HMRC) in a legal dispute that secured her a hefty sum of £1.2 million.
Lorraine Kelly managed to avoid paying £1.2 million in taxes with the help of a judge who characterized her as a "charming woman" who is in charge of her own affairs in the year 2019.
In 2012, she agreed to host the 'Daybreak' and 'Lorraine' shows for ITV Breakfast. To make the deal, she used her services company called Albatel Limited. However, HMRC claimed that she was actually an employee of ITV.
During the incident, Kelly expressed to Judge Dean that she was "perplexed" by HMRC's behavior and refused to accept that taxes and national insurance were supposed to be subtracted from her earnings through the PAYE method.
According to her, she has been working as a 'freelancer' since 1992 and throughout this period, she has been employed by prominent media channels such as Channel 4, Sky, ITV, Scottish TV, and the BBC. Additionally, she has been writing columns on a weekly basis for the Sun newspaper.
Being one of the few TV celebrities whose names are featured in the titles of their programs is viewed by her as a source of pride and accountability.
She has the freedom to promote various commercial products in any way she desires. For instance, she recently designed a clothing line for JD Williams, serves as a brand representative for Avon, and even stars in an online commercial for Wayfair furniture company.
Illustrating her autonomy, she stated that she rejected the opportunity to conduct a live interview with Elton John from Australia at the wee hours of 4am because she was set to film with the BBC later on the same day.
Describing how her relationship with ITV operates, she stated that she was away from the channel's morning program for a duration of four weeks in 2017 while she was on a trip to Antarctica.
Finally, a judge determined that she was employed to provide entertainment and had authority over both her schedule and performance.
The judge stated that they were content with Ms. Kelly's self-presentation as a brand, which aligns with the specific brand that ITV was searching for when hiring her.
Every aspect of the production is a display, with the objective of presenting oneself as an amiable, conversational, and entertaining individual.
After the incident, Kelly mentioned that she could now 'giggle' about the comments made by the judge. She further stated that it was a small misunderstanding and she comprehended what the judge intended to say. Despite the situation providing amusement for many, Kelly expressed that she was content with letting it go.
The unfavorable streak of HMRC against television celebrities persisted as Loose Women's Kaye Adams triumphed in her decade-long legal dispute with them concerning a contested tax liability of £124,000.
A 61-year-old woman named Kaye Adams was engaged in a dispute over her employment status, claiming that she was working for herself during the years 2013-2017 while presenting 'The Kaye Adams Programme' on BBC Radio Scotland.
HMRC contended that the host, who worked as an independent contractor while she was affiliated with BBC Scotland.
Throughout the proceedings, great emphasis was given to the fact that Adams had worked as an independent journalist for two decades.
Over the span of 10 years, the lady who is now 61 years old had to go to court three times. She claimed that she was working for herself when she presented 'The Kaye Adams Programme' on the BBC Radio Scotland for four years from 2013 to 2017.
Similar to previous cases, the government stated that she was a worker who had not paid taxes for her stint on the show. Her salary for presenting at least 160 episodes every year on the BBC was £155,000 annually. Therefore, she owed thousands in unpaid taxes.
The tax authorities claimed that the TV host, who worked as an independent contractor while working for BBC Scotland under her business, Atholl House Productions Ltd, had to pay a total of £81,150.60 for income tax and £43,290.98 for national insurance.
Adams made a plea to the First Tier Tax Tribunal and initially received a favorable verdict in April 2019. Nonetheless, HMRC persisted in rejecting the decision, causing three additional hearings.
The celebrity who is from Grangemouth, Stirlingshire, succeeded for the third time in a legal fight in November. This was after a court concluded that she was an independent contractor.
The ex-participant of Strictly Come Dancing begged the tax organization to avoid taking the case to a higher court and expressed how the ten years of financial uncertainty had been nearly intolerable.
In January of this year, HMRC stated that they were not going to challenge the decision after examining it thoroughly. They believed that it wouldn't be fair to contest it since the case had been in progress for a long while, and it wouldn't be appropriate to do so.
Adams criticized HMRC, stating that she was completely shocked by the actions taken by this department, following her spending almost £300,000 on legal expenses to defend her case.
She expressed that the HMRC holds the authority to cause detrimental effects to individuals who are diligent, truthful, and industrious without facing any retribution.
They are not only ruining people's lives, but also blatantly disregarding the laws. The determination of self-employed status has shifted from legal guidelines to the pressure from HMRC and risk management implemented by media companies.
I managed to win my case against HMRC, but it feels like a hollow victory. The reason being, I've spent almost £300,000 on legal fees, money that should have been saving for my retirement. It's ironic how justice comes at a hefty cost.
Helen Fospero, who works as a TV host, managed to avoid a payment of £80,000 to HMRC after successfully fighting her case in 2019.
Eamonn Holmes was unable to win the legal battle against HMRC, who had accused him of not paying £250,000 in taxes.
The presenter of the TV show This Morning had to sell his much-loved home in east Belfast to settle his huge tax debt. This was because authorities determined that he was an employee of the broadcasters and not an independent contractor.
In 2019, Helen Fospero, a television personality, successfully avoided a tax fee worth £80,000 after battling it out with HMRC.
Eamonn Holmes had no choice but to sell his cherished property in the eastern part of Belfast in order to settle a significant debt of £250,000 following a tax dispute with the HMRC.
The individual hosting television programs, seen in this photo taken outside the Tric Awards during the month of July in the year 2022, alleged that the HM Revenue and Customs had stripped them of all their hard-earned achievements.
Eamonn Holmes thinks that his intense shingles outbreak, which could have resulted in blindness, was caused by the pressure of his £250,000 tax dispute.
The presenter claimed that he did not receive any holiday or sick pay; however, they reportedly demanded him to pay for taxes and insurance payments that occurred over the past decade.
He announced in February of the previous year that he was contesting the decision. He also mentioned that the hearing was the most challenging event he had faced, next to losing his father.
In an interview earlier this year with NVTV, he expressed that the deprivation of his residence left him feeling as though all the hard work he had put in was for nothing.
The individual who is 64 years old stated that due to the tension and disagreement, they experienced a severe instance of shingles; a type of virus that could have resulted in loss of sight.
The celebrity on television expressed, "I felt like I was being led to my demise. The occurrence was extremely taxing and degrading."
. Phil Thompson, who is a former Liverpool star and now a pundit for Sky Sports, unfortunately had to surrender to the government last December after losing a battle over £300,000.
Adrian Chiles, a popular media personality, is currently engaged in a legal tussle with HM Revenue and Customs. The dispute which is over a sum of £1.7 million, is said to be linked with his services rendered while working for two of the UK's biggest broadcasting companies, the BBC and ITV.
He explained his sickness by saying, "It was really frightening to witness it. My face appeared as if somebody had hit it numerous times with a baseball bat."
Regarding Eamonn's struggle with taxes, a representative from HMRC stated to MailOnline that they prioritize the welfare of every taxpayer and ensure that they provide assistance to anyone who reaches out to them to sort out their tax issues. This includes providing reasonable payment options.
In April, HMRC won a legal dispute worth £210,000 against ex-footballer and Sky Sports presenter Neil McCann. Likewise, in December of last year, Phil Thompson - a renowned Liverpool footballer and Sky Sports analyst - lost his own fight against the government, which cost him £300,000.
Adrian Chiles, a person who presents programs on radio and television, is currently engaged in a legal dispute with HMRC. It is said that he owes £1.7 million for his services at both BBC and ITV.
