HMRC file appeal as Gary Lineker’s £4.9m tax case faces new twist

An appeal has been launched by HMRC against a court ruling that Gary Lineker did not break any rules around a £4.9m tax bill. In March the Match of the Day host was cleared of any wrongdoing linked to IR35 legislation after receiving accusations of underpaying income tax between 2013 and 2018.

While HMRC claimed that Lineker was a disguised employee of BBC and BT Sport a judge instead ruled that he was a freelancer with direct contracts with both broadcasters.

He maintained that all taxes were paid on the income via his media firm set up in 2012, with ex-wife Danielle Bux, and in March 2019 they first began an appeal against the revenue commissioners.

Judge John Brooks, who released the case decision on March 28, 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.”

However The Mirror reports that HMRC have now filed an appeal and tax experts also think that if this first attempt to overturn the decision folds they are prepared to go all the way to the Supreme Court.

Chief executive of compliance firm IR35 Shield Dave Chaplin said: “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 March’s decision 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 spokesperson has been contacted in relation to the appeal, which is yet to have a date set.

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

Other broadcasters including Lorraine Kelly and Kaye Adams have also been targeted by HMRC, both of whom won their cases on appeal.