HMRC to appeal Gary Lineker IR35 case

  • Business Advice
Peninsula Group Limited - an employee appealing their disciplinary procedure
Peninsula Logo

Peninsula Group, HR and Health & Safety Experts

(Last updated )

After losing the argument over Gary Lineker’s employment status, HMRC plans to appeal the ruling at the Upper Tribunal

The First Tier Tribunal ruled in favour of Lineker in March this year, after he appealed a tax demand from HMRC for unpaid tax of £4.9m related to earnings between 2013 and 2018 for TV presenter work for the BBC and BT Sport.

In total, HMRC is pursuing Lineker for £3,621,735.90 in income tax and £1,313,755.38 in national insurance contributions (NICs).

The litigation involved the IR35 intermediaries legislation which is designed to clamp down on contractors who charge for their services through personal service companies.

Lineker provided his services via a partnership through Gary Lineker Media LLP and this type of arrangement was not covered by the IR35 rules. Unless the rules are changed retrospectively it would seem unlikely that HMRC could win the argument.

At the First Tier Tribunal, Judge John Brooks said: ‘As a matter of law when Mr Lineker signed the 2013 BBC contract, the 2015 BBC contract and the BT Sport contract for the provision of his services, he did so as principal thereby contracting directly with the BBC and BT Sport.

‘As such, the intermediaries legislation cannot apply – it is only applicable ‘where services are provided not under a contract directly between the client and the worker’. In this case, Mr Lineker’s services were provided under direct contracts with the BBC and BT Sport.’

Not sure what IR35 is? Check out BrAInbox for questions like What is IR35?

Companies fined £7m for underpaying minimum wage

One in four workers want to change jobs

HMRC issues 18k penalties over careless errors

Director loses £84k VAT case

Related articles

  • polling station

    Blog

    What could a general election mean for employment law?

    Here's what the big three have each vowed to do should they come away with an election win.

    Peninsula TeamPeninsula Team
    • Employment Law
  • NIC

    Blog

    Conservatives plan NICs abolition for self employed

    After a difficult week, PM Rishi Sunak has set out a raft of tax measures at the Conservative manifesto launch with plans to abolish main NICs rate for four million self employed workers

    Peninsula TeamPeninsula Team
    • Employment Law
  • Global survey results

    Blog

    UK Lagging in Mental Health Conversations: A Wake-Up Call for Employers

    The UK is diverging from this global trend, with a 4% decrease in employees speaking out about mental health issues.

    Peninsula Team Peninsula Team
    • Business Advice
Back to resource hub

Try Brainbox for free today

When AI meets 40 years of Peninsula expertise... you get instant, expert answers to your HR and Health & Safety questions

Sign up to our newsletter

Get the latest news & tips that matter most to your business in our monthly newsletter.