Imagine you're a famous TV and radio star. You have your own show, you're on the quiz program "Eggheads" and you even cover elections for the BBC. Sounds pretty great for Jeremy Vine, one of our best-known broadcasters, but it's not all fun and games right now. He's in a bit of hot water with the Taxman, and it's all because of IR35.
IR35 is a set of tax rules named after the press release that announced it – Inland Revenue 35. (Inland Revenue being old name for HMRC). These rules were created to make sure people pay the right amount of tax. The reason being some people had set up their own small companies and then would work for bigger companies through these small companies. They did this because it can sometimes mean paying less tax... and the Taxman doesn't like this if the person is really working just like a regular employee.
Jeremy Vine's Situation
Jeremy Vine has his own company called Jelly Vine Productions Ltd. For years, he's been working for the BBC through this company. But now, HMRC thinks Jeremy should have been treated like a regular BBC employee all along. HMRC is looking at the work Jeremy did for the BBC from July 2013 to December 2015, including his Radio 2 show, his work on "Eggheads" and other programs. They think Jeremy should have paid more tax during this time.
Tax investigations can take a long time and so this matter has come up even though it's been over ten years. HMRC will look at lots of information to decide if the rules were followed correctly and they only realize there might be a problem years after the work was done.
Vine isn't the only one facing this issue. Other famous BBC stars like Kaye Adams and Adrian Chiles have also had problems with IR35. Kaye Adams recently won her case after nine years of arguing about it. Adrian Chiles, won his first tier tribunal case two years ago, however he might have to pay £1.7 million in taxes after all as he now has to go back to that tribunal as HMRC won its own appeal at the upper tribunal.
Jeremy Vine and his lawyers are fighting back and have gone to tribunal to argue their case. The judge, Amanda Brown, has said the case can go ahead. This means there will be a big hearing where both sides can present their arguments. It could take a long time – maybe even years – before the final result.
The entire charade shows how complicated tax rules can be, even for famous and successful people. It highlights a debate about how people should be employed and paid, especially in industries like TV and radio. The ruling could affect how other people in similar situations are treated by the tax office.
The general response to Vine's situation is sympathetic as IR35 rules are long argued as overtly complicated, unfair and unclear - with many stating someone should not have to be suddenly railroaded for a decade old situation. Other people, often citing Vine's cycling social media posts, think those avoid taxes should pay their fair share and that Jeremy might need to use his bicycle more if he has to cover his potentially large tax bill.
The BBC's Role
It's worth noting that the BBC itself has played a part in this situation. In the past, the BBC often encouraged its presenters to set up their own companies and work this way. They might not have realised it would cause problems later on. For example, a presenter named Christa Ackroyd had to pay over £400,000 in taxes because of a similar issue.