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

23 June 2023 , 14:57

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A judge ruled in Gary Lineker's favour in March against the action taken by HMRC. (Image: PA)

HMRC have launched an appeal against a court ruling that Gary Lineker did not break any rules around a £4.9m tax bill.

The Match of the Day presenter was cleared in March of any wrongdoing linked to IR35 legislation after being accused of underpaying income tax between 2013 and 2018.

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

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

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.”

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But now HMRC have filed an appeal and tax experts also believe that if this initial attempt to overturn the decision fails they will go as far as the Supreme Court.

Dave Chaplin, chief executive of compliance firm IR35 Shield 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.

Lineker was cleared by a judge following a hearing in March (Getty Images)

“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.

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

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

Alan Smith