Kaye Adams Wins a Long‑Running Battle With HMRC (And Finally Gets the Break
After a decade of back‑and‑forth, the UK tax authority has finally slipped out of the tax‑fishing net that had been cast over media freelancer Kaye Adams. The case centered on a misunderstanding of the IR35 tax law, which had forced HMRC to issue a whopping £70,000 bill that was never due.
Why HMRC’s “Proportionality” Argument Doesn’t Hold Water
Dave Chaplin, CEO of IR35 Shield was quick to call the ruling a “no‑sense” move. He points out the irony: if the force behind the decision was trying to keep the cost to “proportionate,” why did HMRC spend a tidy sum on three barristers for the final hearing? The reasoning falls flat.
- HMRC dragged Kaye through a trilogy of hearings.
- None of the courts ever sided with HMRC’s claim.
- The tax bill was a complete miss‑shoot.
The Court’s Take
The Court of Appeal named the case a warning: “It would be myopic to ignore that Kaye ran her own business and had an established freelance career.” That’s the kind of clarity that should’ve made HMRC rethink their approach the very first time they tried to stamp their stamp.
HMRC’s Official Position
In a press release, HMRC downplayed the case’s significance, noting that First‑tier rulings are not binding precedent. That statement was meant to tidy up the controversy about the so‑called Atholl House precedent, which, according to the tribunal, cannot be brushed aside. The truth? The legal line‑up from the upper tiers and the appeal courts is pretty much yours and theirs.
Kaye’s Protest
Do you want to read Q&A with the real hero of this saga?
Kaye Adams tells us:
“I’m thrilled HMRC won’t pursue a fifth round—although their surprise exit is just as shocking as the whole ordeal. The department decided not to appeal because they claimed it wasn’t ‘proportionate.’ Nothing about that looks proportionate at all.”
“After the first hearing, I spent more money on lawyers than the tax dispute itself. What was HMRC’s ‘proportionate’ concern as they pushed on in the Upper Tribunal, then the Court of Appeal, and finally the First‑Tier Tribunal again?”
“No victory has come from them. Their only weapon: the fear that we’ll be next.”
“They’re basically saying this case doesn’t set a binding precedent. That can’t be true.”
“IR35 is messed up. Freelancers with ten‑day contracts are literally being shoe‑horned into PAYE—no rights, no benefits, just pure paperwork aches.”
“Not only are lives ruined but the legislation is made a joke. The status of self‑employment is being made out by HMRC’s bulk bargaining, not the law.”
“It’s a pyrrhic win. I spent nearly £300,000 on legal fees that could’ve topped my pension. Justice, huh?”
Takeaway
As the tax saga closes, Kaye’s saga becomes a cautionary tale for every gig‑worker scrambling to keep their freedom and financial sanity. For now, the only thing certain is that the same bureaucrats who tossed the tax paperwork might have just learned the hard way that proportionate isn’t an empty buzzword—they’re being reminded that the law is a living, breathing fight, not something you can slide past.
