Gary Lineker wins £4.9 million tax battle with HMRC

Gary Lineker has gained his £4.9 million tax battle with HMRC.

The Match Of The Day host was advised by the taxman he ought to have been classed as an worker of the BBC and BT Sport for his presenting duties, reasonably than as a freelancer.

The tax authorities pursued him for £4.9 million it claimed ought to have been paid on earnings obtained between 2013 and 2018.

It comes as a part of laws often called IR35, designed to clampdown on tax avoidance by so-called disguised workers, who cost for his or her companies through restricted corporations.

All through proceedings the presenter, 62, insisted all taxes had been paid on the earnings through a partnership arrange in 2012 along with his ex-wife Danielle Bux.

Tribunal Choose John Brooks discovered the IR35 laws didn’t apply as a result of there have been direct contracts between the presenter and each the BBC and BT Sport.

The tribunal discovered that whereas Gary Lineker Media (GLM), which he arrange along with his then spouse in 2012, was a partnership to which IR35 laws applies, the attraction was nonetheless dismissed in full as a result of contracts existed.

The decide stated: “As a matter of legislation, when Mr Lineker signed the 2013 BBC Contract, the 2015 BBC Contract and the BT Sport Contract for the supply of his companies, he did in order principal thereby contracting immediately with the BBC and BT Sport.

“As such, the intermediaries laws can not apply – it is just relevant ‘the place companies are offered not underneath a contract immediately between shopper and the employee’.

“On this case Mr Lineker’s companies had been offered underneath direct contracts with the BBC and BT Sport.

“Though such a conclusion would possibly seem inconsistent with my conclusions that the intermediaries laws can apply to partnerships… that isn’t the case.”

HMRC has 56 days to attraction to the Higher Tribunal (Tax and Chancery Chamber) if it needs to take action.

In response to the information, Waqar Shah, Tax Disputes companion at legislation agency Kingsley Napley LLP, says: “IR35 is such a wide-ranging regime with lack of readability embedded within the guidelines that it’s unsurprising it’s more and more an space for dispute with HMRC. Regardless of the under-resourcing challenges it faces, HMRC is within the technique of contacting increasingly more organisations and people with respect to their IR35 compliance. They’ve in depth powers to assert backdated Earnings Tax and NICs, assess for curiosity and concern penalties so investigations are to not be taken calmly. Nevertheless right now’s win by Gary Lineker reveals that HMRC is just not at all times proper. Till the federal government places reform of IR35 again on the agenda, we’ll proceed to see excessive profile disputes of this nature.”

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