Former England national football team captain Bryan Robson has succeeded in most of his appeal against HMRC over alleged IR35 breaches relating to his work as Manchester United’s global ambassador between 2015/16 and 2020/21.
The first-tier tax court upheld Robson’s challenge in four of the six disputed tax years, although it found that a portion of his earnings from December 2019 to April 2021 should have been treated as business income.
The court ordered HMRC and Robson to determine which portion of these profits stemmed from image rights, with the remainder subject to additional tax under IR35 rules. The Robson case, dating back nearly a decade, highlights the complexities of IR35 legislation, designed to determine whether individuals are effectively self-employed or should be treated as employees for tax purposes.
Dave Chaplin, CEO of IR35 Shield, an IR35 compliance firm, attended the hearing and said: “Robson is now a member of another unfortunate club, the ‘IR35 Contract Club’ of individuals who, due to unworkable IR35 legislation, have been left in disarray.” . A position of tax uncertainty after almost 10 years of providing his services.
Chaplin pointed to the huge legal and administrative costs of a four-day court, suggesting that the final tax bill may not outweigh HMRC’s expenses in prosecuting the case.
Chaplin has also criticized the out-of-work pay legislation that replaced the original IR35 framework, stating that it burdens UK businesses and hinders growth.
“The government and tax authorities should celebrate the entrepreneurial spirit of self-employed people who simply want to be their own boss, not be vilified… through harmful, ideologically-driven legislation that limits their freedoms,” he said.