HMRC has confirmed the settlement of its high-profile IR35 tax case with Gary Lineker, ending a long-running dispute over £4.9m tax liabilities linked to his presenting work with the BBC and BT Sport.
The case, which was initially ruled in favor of Lineker by the First-tier Tribunal (FTT), was set for a hearing in the High Court after HMRC appealed. However, the appeal was withdrawn, and the case was settled out of court. The terms of the settlement remain unannounced.
Dave Chaplin, CEO of IR35 compliance firm IR35 Shield, highlighted the complexities of the case, explaining that Lineker was operating through a general partnership, a structure that already subjected him to sole trader-style income tax. “Almost all income tax was paid in advance,” Chaplin said, adding that Lineker also paid National Insurance contributions for both employers and employees because of the partnership structure.
Chaplin explained that the disputed amount was much less than the £4.9 million that had been widely reported, and instead amounted to between £300,000 and £400,000 spread over several years. This represents the marginal difference between employer NICs and sole trader NICs.
While that chapter has been closed for Lineker, the wider IR35 saga continues, with other court cases still pending. “Our court visits are not over yet,” Chaplin said.
The settlement marks the end of a contentious chapter for Lineker while underscoring ongoing challenges around IR35 compliance and implementation.
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