--- title: "IR35 Tax Appeals: Gary Lineker’s Off-Payroll Working Dispute with HMRC" url: https://taxdisputes.co.uk/2024/12/ir35-tax-appeals-gary-linekers-off-payroll-working-dispute-with-hmrc/ date: 2024-12-03 modified: 2026-06-02 author: "H Shahab Alvi" description: "Gary Lineker, the former England footballer and Match of the Day presenter, became embroiled in a high-profile IR35 tax dispute with HMRC, which argued he should be taxed as an employee due to his work with the BBC and BT Sport between 2013 and 2018. Lineker contended that he was a freelancer, operating through his partnership, GLM, and not an intermediary. The First-tier Tribunal ruled in his favour in March 2023, stating that his partnership did not qualify as an intermediary under IR35. This case highlights the complexities of IR35, emphasising the importance for contractors and businesses to carefully define working arrangements to avoid costly tax disputes." categories: - "Account Freezing Orders" - "Appeals" - "First Tier Tax Tribunal" - "High Court" - "HMRC" - "HMRC Account Freezing Order" - "HMRC Assessments" - "HMRC Campaigns" - "HMRC Penalty" - "HMRC Winding-up Petition" - "IR35" - "Litigation" - "Media" - "National Insurance" - "News" - "Personal Service Companies" - "Report on HMRC" - "Tax avoidance" - "Tax Evasion" - "Tax Investigation" - "Tax Law" - "Tribunal Proceedings" - "Uncategorized" - "Unless Order" - "Unpaid Duty" - "Upper Tribunal" - "Value Added Tax" - "VAT" - "VAT appeal" - "Voluntary Disclosure" tags: - "Contractors" - "First Tier Tax Tribunal" - "Freelancers" - "HMRC" - "HMRC Account Freezing Orders" - "HMRC appeal" - "HMRC Costs" - "HMRC Investigations" - "HMRC Petition" - "HMRC Policy" - "hmrc settlement" - "HMRC statutory demand" - "HMRC Tax Appeal" - "HMRC Tax Assessment" - "HMRC Tax Disputes" - "IR35" - "IR35 Disputes" - "IR35 Employees" - "ir35 employers" - "IR35 legislation" - "IR35 Reforms" - "Tax Evasion" - "Tax Fraud" - "Tribunal Representation" - "Unpaid Tax" - "VAT" image: https://taxdisputes.co.uk/wp-content/uploads/2024/12/Gary-Lineker-and-IR35-A-Landmark-Tax-Dispute-in-the-UK.jpg word_count: 977 --- # IR35 Tax Appeals: Gary Lineker’s Off-Payroll Working Dispute with HMRC ### What Is IR35, and How Does It Relate to Gary Lineker? [IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35), the UK’s [off-payroll](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35) working legislation, is designed to prevent tax avoidance by individuals who provide services through intermediaries, such as [Personal Service Companies (PSCs)](https://commonslibrary.parliament.uk/research-briefings/sn05976/), but work in a manner similar to employees. This legislation ensures that such workers pay the appropriate income tax and [National Insurance](https://www.gov.uk/national-insurance) contributions. Many contractors, particularly those in the media industry, find themselves caught in the cross-hairs of HMRC’s heavy-handed application of [IR35](https://taxdisputes.co.uk/2024/04/ir35-and-its-impact-on-freelancers/) tax rules, facing hefty tax bills, assessments and penalties if they are deemed “disguised employees”. [Gary Lineker](https://taxdisputes.co.uk/2023/03/gary-lineker-wins-battle-with-hmrc-over-4-9m-tax-bill/), a former England footballer and *Match of the Day* presenter, became one of the most high-profile figures entangled in an [IR35 tax dispute](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35). The case, centred on a £4.9 million tax bill, raised important questions about employment classification and the boundaries of freelancer autonomy. ## What is IR35? [IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35) is tax legislation designed to ensure that contractors who conduct work in essentially the same way as employees, pay the correct amount of tax. ## Who does IR35 apply to? The IR35 rules in general apply to: - workers; - who provide a service; - to a company or individual; - through an intermediary; - where this service might ordinarily be done by an employee. ### Gary Lineker’s IR35 Tax Dispute The dispute involved income [Lineker](https://taxdisputes.co.uk/2023/03/gary-lineker-wins-battle-with-hmrc-over-4-9m-tax-bill/) earned between 2013 and 2018 from the [BBC](https://www.bbc.com/) and BT Sport. [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) argued that [Lineker](https://taxdisputes.co.uk/2023/03/gary-lineker-wins-battle-with-hmrc-over-4-9m-tax-bill/) should be treated as an employee of these broadcasters and taxed accordingly. However, [Lineker](https://taxdisputes.co.uk/2023/03/gary-lineker-wins-battle-with-hmrc-over-4-9m-tax-bill/) maintained he was a freelancer, operating through GLM, a general partnership he set up in 2012. Key issues in the case included: - **Intermediaries Legislation**: [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) claimed GLM acted as an intermediary, making [Lineker](https://taxdisputes.co.uk/2023/03/gary-lineker-wins-battle-with-hmrc-over-4-9m-tax-bill/)’s income subject to [IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35). - **Direct Contracts**: [Lineker](https://taxdisputes.co.uk/2023/03/gary-lineker-wins-battle-with-hmrc-over-4-9m-tax-bill/) argued his contracts with the [BBC](https://www.bbc.com/) and BT Sport were direct and not facilitated through an intermediary. - **Section 49(1)(b) of the [Income Tax (Earnings and Pensions) Act 2003](https://www.legislation.gov.uk/ukpga/2003/1/section/49)**: The tribunal examined whether his working arrangements met the legal definition of employment under this section. The [First-tier Tribunal](https://www.gov.uk/courts-tribunals/first-tier-tribunal-immigration-and-asylum) ruled in [Lineker’s](https://taxdisputes.co.uk/2023/03/gary-lineker-wins-battle-with-hmrc-over-4-9m-tax-bill/) favour in March 2023, determining that his partnership did not qualify as an intermediary under [IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35). [HMRC ](https://www.gov.uk/government/organisations/hm-revenue-customs)initially appealed the decision but withdrew its appeal before the [Upper Tribunal](https://www.judiciary.uk/courts-and-tribunals/tribunals/upper-tribunal/) hearing scheduled for December 2024 and settled the case. ### Why Did HMRC Pursue Lineker Under IR35? [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) has taken an increasingly strict approach to enforcing [IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35), targeting individuals who work through partnerships or [PSCs](https://commonslibrary.parliament.uk/research-briefings/sn05976/) but whose roles resemble employment. [Lineker](https://taxdisputes.co.uk/2023/03/gary-lineker-wins-battle-with-hmrc-over-4-9m-tax-bill/)’s case was part of a broader campaign that has included other public figures, such as [Adrian Chiles](https://taxdisputes.co.uk/2024/02/adrian-chiles-1-7m-ir35-hmrc-tax-dispute/) and [Kaye Adams](https://taxdisputes.co.uk/?s=Kaye+Adams). In [Lineker](https://taxdisputes.co.uk/2023/03/gary-lineker-wins-battle-with-hmrc-over-4-9m-tax-bill/)’s situation, [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) focused on: - **Control**: Did the broadcasters dictate his schedule and duties, or did he maintain autonomy? - **Substitution**: Could [Lineker](https://taxdisputes.co.uk/2023/03/gary-lineker-wins-battle-with-hmrc-over-4-9m-tax-bill/) delegate his duties to another presenter? - **Mutuality of Obligation**: Did the [BBC](https://www.bbc.com/) or BT Sport guarantee him a continuous stream of work? The tribunal found that [Lineker](https://taxdisputes.co.uk/2023/03/gary-lineker-wins-battle-with-hmrc-over-4-9m-tax-bill/) exercised significant control over his work and bore the financial risks associated with freelancing, solidifying his status as a self-employed individual. ### What Does Gary Lineker’s Case Mean for Contractors and Freelancers? [Lineker](https://taxdisputes.co.uk/2023/03/gary-lineker-wins-battle-with-hmrc-over-4-9m-tax-bill/)’s victory offers hope for other contractors facing similar [IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35) challenges. It underscores the importance of clearly defined contracts and working arrangements that reflect genuine freelancer status. However, the complexity of [IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35) means that no two cases are identical, and outcomes often hinge on nuanced interpretations of [tax law](https://taxdisputes.co.uk/). For businesses, the case serves as a reminder to carefully assess the employment status of contractors to avoid costly disputes. ## The Broader Impact of IR35 While the recent media cases grab headlines, [IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35) impacts a much wider range of contractors across various industries: - **IT Contractors:** Developers, programmers, and IT consultants frequently work through PSCs. Determining their [IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35) status depends on factors like project control, equipment ownership, and the ability to subcontract. - **Marketing & Communications Consultants:** These professionals often work on a project basis with various clients.[ IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35) hinges on factors like client control over deliverables, working hours, and the ability to subcontract work. - **Construction Contractors:** [Freelance](https://taxdisputes.co.uk/2024/04/ir35-and-its-impact-on-freelancers/) plumbers, electricians, and other skilled tradespeople may operate through PSCs. [IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35) assessment here looks at control over working methods, materials used, and whether they can bring in subcontractors. This is not an exhaustive list, but it highlights how [IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35) casts a wide net across the contractor landscape. ## Is It Worth Fighting HMRC? Yes. If you have a case with merits, you may have the right to challenge a tax appeal or tax assessment (but there is ordinarily a 30 day time limit). Seek legal advice as soon as possible. HMRC are also bound by internal guidance, for example their [Litigation and Settlement Strategy (LSS)](https://taxdisputes.co.uk/wp-content/uploads/2024/10/HMRC_Resolving_tax_disputes.pdf) to resolve tax disputes. [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) will not usually persist with a tax dispute unless it potentially secures the best practicable return for the Exchequer and [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) has a case which it believes would be successful in litigation. Our team of [tax specialist solicitors and barristers](https://taxdisputes.co.uk/expert-advice/) (our [leading barrister](https://taxdisputes.co.uk/expert-advice/) was previously counsel to [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs)) offer effective and robust representation for you. ### How Our Law Firm Can Help Contractors in IR35 Disputes At [LEXLAW](https://lexlaw.co.uk/), we recognise the intricate challenges contractors encounter in today’s dynamic tax environment. Our specialised team of legal experts is dedicated to [IR35 ](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35)compliance, providing bespoke solutions to protect your interests and mitigate tax disputes. Whether you are a seasoned independent professional or embarking on your freelance journey, we offer comprehensive legal support tailored to your specific needs. The ongoing [IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35) discourse, exemplified by high-profile cases such as [Adrian Chiles](https://taxdisputes.co.uk/?s=Adrian+Chiles), [Gary Linker](https://en.wikipedia.org/wiki/Gary_Lineker) and [Kaye Adam](https://taxdisputes.co.uk/2024/02/kaye-adams-triumphs-over-hmrc-in-9-year-ir35-tax-dispute/), underscores the complex landscape contractors navigate. As tax regulations continue to evolve, proactive legal counsel becomes indispensable in safeguarding the rights and financial well-being of self-employed individuals. Our services include: - **IR35 Status Assessment**: We evaluate your working arrangements to determine your [IR35 ](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35)risk. - **Contract Review**: We help structure contracts to minimise exposure to [IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35). - **Representation in HMRC Disputes**: Our team negotiates with [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) on your behalf and ensures your interests are protected. - **Tribunal Representation:** In the event your case goes to the [First-tier Tribunal (FTT)](https://www.judiciary.uk/courts-and-tribunals/tribunals/first-tier-tribunal/), our experienced lawyers can effectively present your arguments.