Lorraine Kelly has won a legal battle against HM Revenue and Customs (HMRC) over a £1.2 million tax bill, after a tribunal ruled she was not employed by ITV but performed as her 'chatty' TV persona. The 59-year-old presenter received the bill in 2016 for income tax and national insurance contributions, which HMRC claimed she owed as an ITV employee. However, Kelly argued she was a freelancer, and the judge sided with her, describing her as a 'self-employed star'.
The case centred on a contract Kelly signed in 2012 through her company to present 'Lorraine' and previously 'Daybreak'. In 2016, she was billed nearly £900,000 in income tax and over £300,000 in national insurance. Judge Jennifer Dean ruled that Kelly's relationship with ITV was 'a contract for services and not that of employer and employee', noting she did not receive staff benefits like holiday or sick pay and could take on other work.
The tribunal also found that Kelly could be classified as a 'theatrical artist', allowing payments to her agent as tax-deductible. Judge Dean stated: 'We did not accept that Ms Kelly simply appeared as herself... she presents a persona of herself, she presents herself as a brand.' She added that 'all parts of the show are a performance' and that Kelly is 'public Lorraine Kelly' while on air.
Kelly, who marked her 35th television anniversary this year, began her career at a local newspaper before joining BBC Scotland and later ITV. She was appointed an OBE in 2012 for services to charity and the armed forces. HMRC expressed disappointment with the ruling and is considering an appeal.
