[UK] HMRC files appeal in Lineker £4.9m tax bill case

In the UK, HMRC has launched an appeal against a court ruling that Gary Lineker did not break any rules regarding a £4.9m tax bill, Mirror reports.

In March the sports broadcaster was cleared of any wrongdoing linked to IR35 legislation following an accusation that he had underpaid income tax between 2013 and 2018.

HMRC reportedly argued that Mr Lineker was a disguised employee of both the BBC and BT Sport. However, a judge ruled that he was a freelancer who had direct contracts with the broadcasters.

Mr Lineker stated that all taxes were paid on the income via a media firm he had set up in 2012, with his ex-wife Danielle Bux. They first launched an appeal against HMRC in March 2019.

Judge John Brooks released the case decision on March 28. He said, “The effect of my conclusions is that because there were direct contracts between the BBC and Mr Lineker and BT Sport and Mr Lineker, the intermediaries legislation [IR35] does not, and cannot as a matter of law, apply.”

Now HMRC has filed an appeal and tax experts reportedly believe that it will go as far as the Supreme Court should this attempt to overturn the decision fail.

Dave Chaplin - chief executive of compliance firm IR35 Shield - told the Mirror, “HMRC probably felt compelled to appeal, because if they didn’t, it would have signalled a potential loophole in the legislation where General Partnerships are used.

“HMRC’s Counsel, in court, admitted that there were other IR35 cases HMRC had settled where partnerships were used. If that was the case, and HMRC let the Lineker ruling go, then HMRC may have faced difficulties for other cases.

“HMRC appear to be going all-in on this, to buy themselves time and prevent contagion in other cases. If HMRC lose, one would expect them to try and appeal to the Court of Appeal, and then the Supreme Court. If HMRC suspect they will eventually run out of road, they will probably lobby Ministers for a change in the law, to shutdown issues going forward.”

Following the March decision Mr Lineker said, through a spokesperson, “I am pleased that the tribunal has confirmed that I have not failed to pay any taxes or national insurance by reason of the IR35 rules.” 

Mr Lineker's spokesperson has been contacted in relation to the appeal. A date is yet to be set.

An HMRC spokesperson, however, told the Mirror that they were immediately considering an appeal. They said, “It is our duty to ensure everyone pays the right tax under the law, regardless of wealth or status.”

Source: Mirror

(Quotes via original reporting)

In the UK, HMRC has launched an appeal against a court ruling that Gary Lineker did not break any rules regarding a £4.9m tax bill, Mirror reports.

In March the sports broadcaster was cleared of any wrongdoing linked to IR35 legislation following an accusation that he had underpaid income tax between 2013 and 2018.

HMRC reportedly argued that Mr Lineker was a disguised employee of both the BBC and BT Sport. However, a judge ruled that he was a freelancer who had direct contracts with the broadcasters.

Mr Lineker stated that all taxes were paid on the income via a media firm he had set up in 2012, with his ex-wife Danielle Bux. They first launched an appeal against HMRC in March 2019.

Judge John Brooks released the case decision on March 28. He said, “The effect of my conclusions is that because there were direct contracts between the BBC and Mr Lineker and BT Sport and Mr Lineker, the intermediaries legislation [IR35] does not, and cannot as a matter of law, apply.”

Now HMRC has filed an appeal and tax experts reportedly believe that it will go as far as the Supreme Court should this attempt to overturn the decision fail.

Dave Chaplin - chief executive of compliance firm IR35 Shield - told the Mirror, “HMRC probably felt compelled to appeal, because if they didn’t, it would have signalled a potential loophole in the legislation where General Partnerships are used.

“HMRC’s Counsel, in court, admitted that there were other IR35 cases HMRC had settled where partnerships were used. If that was the case, and HMRC let the Lineker ruling go, then HMRC may have faced difficulties for other cases.

“HMRC appear to be going all-in on this, to buy themselves time and prevent contagion in other cases. If HMRC lose, one would expect them to try and appeal to the Court of Appeal, and then the Supreme Court. If HMRC suspect they will eventually run out of road, they will probably lobby Ministers for a change in the law, to shutdown issues going forward.”

Following the March decision Mr Lineker said, through a spokesperson, “I am pleased that the tribunal has confirmed that I have not failed to pay any taxes or national insurance by reason of the IR35 rules.” 

Mr Lineker's spokesperson has been contacted in relation to the appeal. A date is yet to be set.

An HMRC spokesperson, however, told the Mirror that they were immediately considering an appeal. They said, “It is our duty to ensure everyone pays the right tax under the law, regardless of wealth or status.”

Source: Mirror

(Quotes via original reporting)