HMRC has confirmed that it has settled the long-running IR35 tax case with Gary Lineker over a £4.9m tax liability on earnings from BBC and BT Sport presenting work.
Mr Lineker was due to appear at a two-day hearing at the Upper Tier Tribunal earlier this week following HMRC's decision to appeal the original First Tier Tribunal (FTT) decision which came down in favour of Mr Lineker. The FTT judge found that limited liability partnerships (Mr lineker was a Member of an LLP) were not covered by the IR35 intermediaries rules.
Now the case has been settled out of court, but HMRC would not disclose the details on the size of the settlement. It has been resolved under HMRC's Litigation and Settlement Strategy.
An HMRC spokesperson told Business & Accountancy Daily: 'We've settled this case with Gary Lineker Media. All settlements we reach are fully in line with our well-established framework for resolving tax disputes.'
Mr Lineker's case is just one in a long line pursued by HMRC against high profile presenters for media companies like Sky and BT Sport where it argues that the personal services provided by the individuals through their managed service (or LLP in this case) should be treated as an employment of the company with whom the contract is made - the end client. Kay Adams (Atoll House Productions Limited v HMRC) won her case against HMRC in November 2023 after some nine years. However, the ex-England rugby player, TV pundit and journalist, Stuart Barnes, lost his case against HMRC recently having prevailed at the FTT.
Food for thought for anyone providing their services through a company or LLP to end users. Professional tax advice ought to be taken as a legal contract alone may not avoid the pitfalls waiting for the unwary.
Peter Nichols - Tax Director
BFN Accounts & Tax Limited