Lorraine Kelly has shared her big regret over a lengthy tax battle with HMRC.
The TV favourite, 64, reportedly ended up in a spat with tax authorities in 2016 after they tried to make her pay almost £900,000 in income tax and more than £300,000 in national insurance. And in 2019, she won the legal battle with HMRC and escaped the £1.2 million tax bill.
However, despite the judge ruling in her favour, Lorraine has revealed how she didn’t exactly escape the experience unscathed.
Lorraine Kelly escapes £1.2 million tax bill
During court back in 2019 amid her tax scandal, Lorraine argued that she is freelance and not an employee of ITV. HMRC bosses claimed she had signed a contract with ITV back in 2012 to present Daybreak and Lorraine.
While the deal was done through the presenter’s company, HMRC executives claimed it made her an employee. Lorraine argued that she has the freedom to turn down work and said she doesn’t get sick pay, holiday or other benefits that most employees receive. Judge Jennifer Dean sided with the star and overturned the tax bill.
Lorraine Kelly shares regret
Now, Lorraine has spoken out about the drama and admitted there is one thing she wishes she had done differently. Speaking to The Sunday Times, she confessed: “We won the case, but we lost the PR battle.
“Looking back, I probably should have said more about it. I just thought, ‘I just want to forget about that and move on.'”
Judge Jennifer Dean said in court at the time: “ITV was not employing a ‘servant’. But rather purchasing a product, namely the brand and individual personality of Lorraine Kelly. She was not entitled to sick pay, holiday pay or other benefits which are generally due to employees.”
What did the judge say about Lorraine Kelly?
The judge concluded: “The relationship between Ms Kelly and ITV was a contract for services and not that of employer and employee. She presents herself as a brand, and that is the brand ITV sought when engaging her. All parts of the show are a performance, the act being to perform the role of a friendly, chatty and fun personality.
“Ms Kelly presents a persona of herself… quite simply put, the programmes are entertaining, Ms Kelly is entertaining. She may not like the guest she interviews, she may not like the food she eats, she may not like the film she viewed, but that is where the performance lies. As no doubt with other entertainers such as Ant and Dec or Richard and Judy.
“We do not doubt that Ms Kelly is an entertaining lady. But the point is that, for the time she is contracted to perform live on air, she is public ‘Lorraine Kelly’.”
Read more: Inside Lorraine Kelly’s romance with husband of 31 years Steve Smith
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