Gary Lineker is in the headlines again having won his appeal against HMRC. He appealed over an assessment for £4.9 million in underpaid Income Tax and National Insurance. The case revolves around the application of the IR35 rules, also known as ‘off-payroll working’.

The IR35 rules are designed to stop contractors working as ‘disguised employees’ by taxing them at a rate similar to an employee, as opposed to the taxes applicable to the self-employed.

We tend to see IR35 challenges occurring when people provide their services through a limited company however in Mr Lineker’s case the intermediary was a partnership. HMRC’s response was that the judgement was correct in confirming the IR35 rules can apply to a partnership however they do not agree with the outcome and are considering an appeal.  

The judgement held that IR35 did not apply in this case because the contracts being considered were direct contracts from Mr Lineker to the BBC and BT Sport.

The definition of employment, self-employment and the application of the IR35 rules hinges on a number of factors and will be specific to each case. Getting it wrong can be costly, so, if you would like any guidance in relation to these matters, please do not hesitate to get in touch.

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