Double Whammy: UK Tax Rules Slam Freelancers and TV Hosts Into the Gulag
Tax company Blick Rothenberg has just dropped the bomb on the so‑called “deemed‑employment” rules that make people who should be free‑lancer freak out. The headlines? IR35 is a recipe for a tax nightmare that hits the gut of the gig economy!
Why the IRS (or, in the UK, HMRC) is pulling the trigger on Loose Women
- ITV’s “Loose Women” hosts are now being asked to sign contracts that treat them as employees for tax, not for the usual employment‑rights thing.
- RT: “ITV wants to dodge tax risk, not actually decide if these people are up and running on their own.”
- Result: the presenters have to juggle paying employee taxes and still keep the freedom of being self‑employed for pension and leave‑drafting.
“Double Whammy” Explained
When something is classified as an employee for the tax department, the employer must pay National Insurance Contributions (NICs). Meanwhile, the contractor keeps the perks of pension coverage and scheduled paid time off. That incongruity is what the company calls a “double whammy.”
ITV’s sneaky cost‑cutting strategy
Imagine the IT host normally earns $100 as a freelancer but the contract writer sees the taxes as a joint burden. ITV flips the script:
- Pay them $87.90 in “hand‑to‑hand” money.
- Company adds NICs on the top‑line, bringing the total cost to $100 again.
In short, the creator steps over the front line to avoid writing a tax bill but still dumps the money value the same way.
Freelance Empire: This is not a niche bug
- Freelancers across the UK—not just glamorous TV stars—are feeling the squeeze.
- Findings: lower client payments, no solid employment rights, and a juggle of extra costs.
- Off‑shoring keeps companies from dancing around the “IR35 compliance” label.
When the End of IR35 is the Only Alternative?
Our experienced gars at Blick Rothenberg reckon if the Government seriously wants the British economy to move from corporate oil to genuine entrepreneurial hustle, the next Budget must go ahead and abolish IR35. In other words: get rid of the tax laws that say “you’re an employee unless you prove otherwise” and instead say “you’re paid* as a freelancer and just pay as you go.”
—Buy a coffee, keep the gigs, and please, stop the double whammy!—
