Gary Lineker has won a huge legal battle with the tax office. The former footballer and Match of the Day host was told by HMRC to pay £4.9million in taxes.
The figure came after HMRC claimed the presenter should have been classed as a BBC and BT Sports employee rather than a freelancer. The change would have meant that he would have needed to pay £4.9m in taxes for work between 2013 and 2018.
The case was brought as part of legislation known as IR35, which is designed to clampdown on tax avoidance by "disguised employees" - those who charge for their services via limited companies. However, Lineker, 62, argued that all his taxes were paid on his income through a partnership set up in 2012 with his ex-wife Danielle Bux.
Tribunal Judge John Brooks ruled in Lineker's favour and said that the IR35 legislation did not apply in this case. This was because there were direct contracts between the presenter and both the BBC and BT Sport.
The judge 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 client and the worker’.
“In this case Mr Lineker’s services were provided under direct contracts with the BBC and BT Sport. Although such a conclusion might appear inconsistent with my conclusions that the intermediaries legislation can apply to partnerships… that is not the case.”
HMRC has 56 days to appeal to the Upper Tribunal (Tax and Chancery Chamber) if it wishes to do so.
