Lorraine Kelly wins £1.2million fight with the taxman

Lorraine Kelly has escaped a £1.2 million tax bill after a judge described her as an 'entertaining lady' who is her own boss.

Kelly, 59, locked horns with the tax authorities over claims that the company through which she provides her services to broadcasters is just a front.

In 2016 HM Revenue and Customs presented her with an income tax bill for almost £900,000, plus national insurance contributions of over £300,000.

Kelly in London on March 1

On her show this morning

Kelly, 59, (left, in London on March 19; and right, on her show a day this morning) locked horns with the tax authorities over claims that the company through which she provides her services to broadcasters is just a front

But now she has scored a victory after a tax judge described her as an 'honest, intelligent' woman who is a super-talented freelancer.

Working for numerous broadcasters, she picks her own work - once even turning down Elton John for an early hours interview that didn't meet her schedule.

She had created her own 'persona' and 'brand' and that is what broadcasters wanted when they took her on, said Judge Jennifer Dean.

The dispute hinged on a contract the Scottish star signed with ITV Breakfast in 2012 to present the 'Daybreak' and 'Lorraine' shows.

She did the deal through her services company, Albatel Limited, but HMRC insisted she in reality became an ITV employee.

Kelly told Judge Dean she was 'baffled' by HMRC's attitude and denied that tax and national insurance should have been deducted from her income under the PAYE system.

She said she had been 'freelance' since 1992 and had since then worked for the BBC, Channel 4, Scottish TV, Sky and ITV, also writing weekly columns for the Sun newspaper.

She considered it an 'honour and a responsibility' that she is one of the handful of TV stars whose names are in the titles of their shows.

She can endorse commercial products however she likes, launching a clothing range for JD Williams, acting as a brand ambassador for Avon and appearing in an online advert for furniture company, Wayfair.

Working for numerous broadcasters, she picks her own work - once even turning down Elton John (seen on February 24) for an early hours interview that didn't meet her schedule

Working for numerous broadcasters, she picks her own work - once even turning down Elton John (seen on February 24) for an early hours interview that didn't meet her schedule

Giving an example of her independence, she said she had refused to interview Elton John on a live link from Australia at 4am as she was filming with the BBC later in the day.

Explaining the 'give and

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