Tuesday, 28 March 2023

Media Guardian: Gary Lineker wins battle with HMRC over £4.9m tax bill

Story from Media Guardian:

Gary Lineker has won his battle with HMRC over a £4.9m tax bill.

The tax authorities had told the Match of the Day host, who operates his own company and works on a freelance basis for the BBC and BT Sport, that he should have been classed as an employee.

The former England striker had appealed to a tribunal in relation to the action by HMRC, linked to legislation known as IR35, designed to clamp down on tax avoidance by so-called disguised employees.

On Tuesday a judge ruled that Lineker was a freelancer who had direct contracts with the two broadcasters.

“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,” said Judge John Brooks, in a 17-page ruling. “Accordingly, and notwithstanding GLM being a partnership, that is the end of the matter and the appeal succeeds.”

Lineker has maintained that all taxes were paid on income via GLM (Gary Lineker Media), a partnership set up in 2012 with his ex-wife, Danielle Bux.

The 62-year-old, who earlier this month won a showdown with the BBC after being temporarily suspended following his tweet about the government’s asylum policy, first launched an appeal on the tax decision in 2019. A tribunal hearing took place last month.

Following the news Lineker said, via 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.”

Lineker’s lawyers had previously said that he was targeted by tax inspectors because of his fame.

HMRC said that it is considering an appeal. “It is our duty to ensure everyone pays the right tax under the law, regardless of wealth or status,” said a spokesperson.

© 2023 Guardian News & Media Limited.