British TV Legends slowly forced off screen as IR35 rules devalue creative independence

Broadcasters and streaming services that respect freelancer independence are likely to be at an advantage to attract top talent and viewer numbers in light of ITV’s “bloodbath”

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OPINION

The familiar faces that have graced British television screens for decades are disappearing. It’s not due to retirement or career changes. It’s down to tax legislation that’s systematically dismantling the freelance ecosystem that built Britain’s world-revered creative sector.

Broadcaster ITV’s 2024 annual report reveals a staggering £61 million potential tax liability dating back to 2016, Dave Chaplin, CEO of IR35 compliance firm IR35 Shield, tells The Freelance Informer, which he says is directly linked to IR35 employment status disputes over freelance workers. This eye-watering sum represents twice what the broadcaster is seeking to save through cost-cutting measures this year and would completely wipe out their 11% year-on-year profit increase.

The human cost is already visible

Well-known presenters, including Janet Street-Porter and Jane Moore, reportedly left Loose Women after refusing to sign new PAYE contracts that would strip away their freelance status and impede them from taking on non-ITV projects. Meanwhile, recent reports suggest Richard Madeley faced potential axing from Good Morning Britain and Lorraine Kelly has allegedly been “asked to retire” as part of what industry insiders call an “ITV bloodbath, according to news reports.

Both Madeley and Kelly have renegotiated their contracts with ITV, but their airtime is being slashed. Some presenters on the long-standing morning TV show Lorraine will no longer take part and will be segmented to other programming now that the show will only be airing for 30 minutes instead of its once 1-hour slot. ITV is justifying the programming changes to budget for more daytime drama programming.

Kelly reportedly may see her time at ITV through to the end of next year, where she may move on to retire from the show. But the British viewing public will likely want Kelly’s infectious laugh and positivity to grace their TV screens in a new format, perhaps at a competing broadcaster or streaming service.

Incidentally, ITV has reported on its Lorraine programme page that the broadcaster is “thrilled to share that Lorraine has been longlisted for a National Television Award for Best Daytime Programme — and Lorraine herself has been nominated for Best Presenter! If you enjoy watching us and want to show your support, you can cast your vote for free right here: https://www.nationaltvawards.com/vote“

The IR35 stranglehold

Dave Chaplin, CEO of IR35 compliance firm IR35 Shield, describes the situation as a “systematic failure that threatens the very foundation of flexible, skilled employment in the media sector.”

“IR35 has become a bureaucratic weapon that HMRC has wielded against businesses,” Chaplin explains. “The consequences are now painfully visible with cuts to Lorraine and Loose Women: ITV is haemorrhaging talent, axing programmes, and facing financial penalties that could have been put to better use.”

The rules, which shifted responsibility for employment status assessments from individuals to hiring companies in April 2021, have created what Chaplin calls a “climate of fear” where organisations make hiring decisions based on regulatory risk rather than business needs.

The nine-year ordeal

The destructive power of IR35 enforcement is perhaps best illustrated by former Loose Women presenter Kaye Adams, who endured a nine-year battle with HMRC across four separate tribunals, according to previous reports by The Freelance Informer. Despite winning every single case, HMRC continued pursuing her with what Adams described as “the bottomless pit of the taxpayers’ purse.”

Sir Iain Duncan Smith warned in the House of Commons at the time that “HMRC is unaccountable; it is the only department that does not publish accounts every year, so there is no scrutiny of moneys lost or failed to be gained.”

Adams’ eventual victory came at enormous personal and financial cost, sending a chilling message to broadcasters: even when courts rule against HMRC, the tax authority refuses to back down.

Industry impact

Andy Chamberlain, director of policy at The Association of Independent Professionals and the Self-Employed (IPSE), describes in an opinion piece the situation as “probably the biggest one in the eye of entrepreneurship in living memory.”

Since April 2021, UK employers have implemented blanket bans on incorporated freelancers, terrified of getting IR35 decisions wrong or facing HMRC’s relentless enforcement. The result? A perverse situation where genuine freelancers are reclassified as ‘deemed employees’—losing their autonomy without gaining job security, while broadcasters lose access to flexible talent while shouldering increased regulatory burden.

“It’s the worst of both worlds,” notes Chaplin. “Freelancers lose their autonomy without gaining job security, while broadcasters lose access to flexible talent while shouldering increased regulatory burden.”

Anti-freelancer policies kill creative industries

Broadcasters have traditionally relied on this pool of skilled professionals to deliver quality content efficiently, but IR35 has forced them to choose between compliance costs and creative investment.

The £61 million hanging over ITV serves as a stark warning to the entire industry, says Chaplin.

When regulatory frameworks actively destroy the creative partnerships that have made British broadcasting globally competitive, the entire sector suffers. Ultimately, so does the viewing public, he suggests.

“The freelance journalism sector, once a vibrant ecosystem of specialist expertise, is being systematically dismantled,” says Chaplin.

“Broadcasters like ITV have traditionally relied on this pool of skilled professionals to deliver quality content efficiently. However, IR35 has created a climate of fear where organisations are making hiring decisions based on regulatory risk rather than business needs,” he says.

He continues,

“The legislative tax sludge has led to a perverse situation where freelancers are being reclassified as ‘deemed employees’, a classification that strips them of genuine employment protections while simultaneously removing the flexibility that made them valuable to broadcasters.”

A fair freelance deal is long overdue

Imagine once upon a time… if the BBC demanded Ricky Gervais become a “deemed employee” before giving the green light for the TV pitch The Office. The pitch came with the non-negotiable that Gervais would lead, direct and co-write with writing partner Stephen Merchant.

BBC would have called the shots on his creative vision, stripping away the very autonomy that allowed Gervais and Stephen Merchant to launch their groundbreaking comedy. We probably would never have seen the show that launched a global franchise and redefined British comedy.

This is the reality facing today’s creative freelancers under IR35.

Rather than continuing this destructive path, there could be a solution that acknowledges economic reality while protecting genuine employment rights.

The government should introduce a Fair Deal for Freelancers that embraces the following considerations:

1. Creates a safe harbour for genuine freelancers

• Employers provide a choice of temp employee status with negotiated PAYE salary and benefits OR freelance independence with no benefits, autonomy, self-employed tax liability and Statement of Work
• Provide legal protection for both freelancers and clients who meet these criteria
• End HMRC’s ability to pursue cases where clear freelance criteria are met

2. Rewards risk-taking with lower tax rates

• Introduce a reduced corporation tax rate (15% instead of 25%) for genuine freelance companies that encourages earning power and multiple clients with higher VAT thresholds
• Implement a freelance dividend tax relief recognising the absence of employment benefits
• Allow greater expense deductions reflecting the reality of independent work

3. Protects employment rights where needed

• Maintain IR35 for genuine cases of disguised employment
• Focus enforcement on sectors with widespread abuse, not creative industries with established freelance traditions
• Implement proportionate penalties rather than the current scorched-earth approach

4. Ensures transparency and accountability

• Require HMRC to publish annual accounts showing IR35 enforcement costs and success rates
• Limit repeat tribunal attempts to prevent harassment of compliant freelancers
• Establish an independent IR35 ombudsman for dispute resolution

Who wants more mobility scooter ads on daytime TV?

IR35 in its current form is arguably destroying British creative industries and driving talented professionals out of the workforce. The £61 million liability facing ITV is just the beginning. Every broadcaster, production company, and creative business faces similar threats.

We can continue down this path of regulatory destruction and anti-entrepreneurialism, watching our television legends disappear from screens and our creative industries wither. Or we can implement a fair system that protects genuine employment while allowing the freelance flexibility that has made British broadcasting world-renowned.

The choice is that of the British public. However, time is running out. Every day we delay a fairer deal for freelancers, more talent walks away, more programmes face the axe, and more of Britain’s creative heritage crumbles under the weight of misguided tax legislation.

The Labour government must act now to save what remains of Britain’s creative freelance sector before our choice of morning TV is filled with canned laughter, out-of-touch re-runs and more mobility scooter ads.

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