Employee or Contractor? Lorraine Kelly's Tax Win Against HMRC

TV presenter Lorraine Kelly hit the headlines after winning a row with HMRC over a £1.2m tax bill.

In 2016, Lorraine received a national insurance and income tax bill from HMRC. The tax office claimed that she was an ITV employee, but Lorraine argued that she was a freelancer.

The judge's ruling

The judge ruled in Lorraine's favour that she was a "self-employed star" and not employed by ITV. The relationship she had with ITV was a contract for services and not that of employer and employee. Lorraine did not receive typical staff benefits such as holiday or sick pay, and she was allowed to carry out other work.

The judge classed Lorraine as a "theatrical artist" who presents a persona of herself as the Lorraine Kelly brand, and it is the brand that ITV purchases.

Employed or contractor?

Someone's employment status — whether they are classed as an employee or self-employed — determines how much tax they pay. That's why we work closely with contractors and freelance staff to ensure they are treated correctly by the tax office.