HMRC’s 10-year tax battle with Loose Women presenter Kaye Adams' has come to an end after the tax authority revealed it would not appeal the court's decision.
The government department confirmed it will not appeal Kaye Adams’ court win at the end of last year over a £124,000 tax bill.
A judgement published on November 29 from the First Tier Tribunal on the case of Atholl House Products, Adams’ company, ruled she was outside of IR35 legislation which covers off-payroll working.
This week, a HMRC spokesperson said: "Given this litigation has been ongoing for a number of years and the First Tier Tribunal does not set binding legal precedents, we don't think it would be proportionate to appeal in this case.
"We always seek to resolve disputes out of court first and only take action to litigate where this isn't possible."
HMRC started investigating Adams’ IR35 status in 2014 in relation to contracts she held with the BBC.
The tax office believed the TV presented came under the rules in 2012/13 and 2016/17 and therefore owed £124,441.
HMRC previously appealed against first and upper-tier rulings during the course of the battle.
A court of appeal hearing in 2022 ruled in favour of HMRC but was challenged by Adams in 2023, her appeal was upheld at the end of November.
CEO of IR35 specialist Qdos accused HMRC of wasting taxpayers money on the case.
Seb Maley said: “HMRC has finally admitted defeat. The tax office has recklessly pursued this case for the best part of a decade – at a huge cost, both to Kaye Adams and taxpayers, whose money has been wasted.
“There’s no doubt the amount spent by HMRC exceeds the £124,000 tax liability being argued over. It’s been a completely wasted exercise, calling into question the tax office’s understanding of the very rules it created and attempts to enforce.”
Conservative MP David Davis also criticised HMRC calling it a “disgrace” for pursuing the case.
In a post on X, Davis wrote: “For HMRC to have even thought they could have won their case against Kaye Adams - after already losing four times - is a further disgrace.
“Kaye won against them every time, which means they are in the wrong. They should have accepted that fact, rather than continue their desperate attempts to undermine the reputation of an innocent taxpayer.”
tara.o'connor@ft.com
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