Today, Gary Lineker’s long-running tax case enters the second and final day of its hearing at the Upper Tribunal – it’s been described as “one of the biggest cases in the history of the IR35 legislation”, by IR35 expert, Qdos.
The Match of the Day presenter is contesting a £4.9m bill that HMRC believes is owed as a result of incorrectly operating outside the clutches of the IR35 legislation when engaged by BT Sport and the BBC.
The investigation was launched in 2017, with HMRC alleging that Lineker was incorrectly operating outside IR35 across a series of contracts held with the BBC and BT Sport. It carries around £4.9m in tax liability, which HMRC believed comprised £3,621,735.90 in Income Tax and £1,313,755.38 in National Insurance Contributions.
However, these figures would have been offset against the taxes Lineker had already paid over the course of these contracts via the partnership he provided his freelance services through – Gary Lineker Media – reducing the overall liability.
In 2023, at a First Tier Tribunal, it was decided that the IR35 rules shouldn’t apply to Lineker due to the structure of his business. However, HMRC appealed, with the Upper Tribunal hearing taking place on 2nd and 3rd December 2024 (found here).
Seb Maley, CEO of IR35 specialist, Qdos, said, “This is arguably one of the biggest cases in the history of the IR35 legislation. Not only does it carry millions in tax liability, but it also involves one of the UK’s highest-profile freelancers – something HMRC has made a habit of doing in recent years.
“It’s also a case that highlights the complexity not just of IR35, but employment status – put differently, whether someone is genuinely self-employed or should be working as an employee and therefore paying employment tax.
“The profile of this case and the eye-watering sums at stake serves as a firm reminder of the importance of ensuring compliance – whether you’re a freelancer or contractor or a business that engages these workers.
