Lorraine Kelly has won a £1.2m tax dispute with HM Revenue and Customs (HMRC) after a tribunal ruled she was a self-employed star, not an ITV employee. The 59-year-old presenter faced a bill of nearly £900,000 in income tax and more than £300,000 in national insurance contributions from 2016.
The case centred on a contract Kelly signed in 2012 through her company to present Lorraine and Daybreak. HMRC argued she was an employee, but the first-tier tax tribunal sided with Kelly, finding that her relationship with ITV was a contract for services. Judge Jennifer Dean noted that Kelly did not receive staff benefits like holiday or sick pay and was allowed to take on other work.
Judge Dean described Kelly as a 'theatrical artist' who performs a persona on screen. 'All parts of the show are a performance, the act being to perform the role of a friendly, chatty and fun personality,' she said. The judge added that the 'Lorraine Kelly' brand was what ITV sought when engaging her.
Kelly, who began her TV career in 1984 with TV-am, has presented GMTV, Daybreak, and her eponymous show Lorraine. She was appointed OBE in 2012 for services to charity and the armed forces. A spokesman for HMRC expressed disappointment and said the department would consider an appeal.
