HMRC has confirmed the settlement of its high-profile IR35 tax case with Gary Lineker, ending a long-running dispute over a £4.9 million tax legal responsibility tied to his presenting work with the BBC and BT Sport.
The case, initially determined in Lineker’s favour by the First-tier Tribunal (FTT), was set for an Higher Tribunal listening to after HMRC appealed. Nonetheless, the attraction was withdrawn, and the case was settled out of court docket. The phrases of the settlement stay undisclosed.
Dave Chaplin, CEO of IR35 compliance agency IR35 Defend, make clear the complexities of the case, explaining that Lineker operated by way of a normal partnership, a construction that already subjected him to revenue tax akin to a sole dealer. “Almost all income tax was already paid upfront,” Chaplin mentioned, including that Lineker additionally paid each employer and worker Nationwide Insurance coverage Contributions because of the partnership construction.
The disputed quantity, Chaplin clarified, was far decrease than the extensively reported £4.9 million, amounting as a substitute to between £300,000 and £400,000 unfold throughout a number of years. This represented the marginal distinction between employer NICs and sole dealer NICs.
Whereas this chapter is closed for Lineker, the broader IR35 saga continues, with different tribunal circumstances nonetheless pending. “Our tribunal visits are far from finished,” Chaplin remarked.
The settlement marks the tip of a contentious chapter for Lineker whereas underscoring the continued challenges round IR35 compliance and enforcement.
