Gary Lineker wins £4.9 million tax battle

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Gary Lineker Wins £4.9 Million Tax Battle
The UK's tax authorities pursued him for £4.9 million it claimed should have been paid on income received between 2013 and 2018. Photo: PA Images
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Gwyn Wright, PA

Gary Lineker has won his £4.9 million tax battle with the UK's revenue and customs department, HMRC.

The Match Of The Day host was told by the taxman he should have been classed as an employee of the BBC and BT Sport for his presenting duties, rather than as a freelancer.

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The tax authorities pursued him for £4.9 million it claimed should have been paid on income received between 2013 and 2018.

It comes as part of legislation known as IR35, designed to clampdown on tax avoidance by so-called disguised employees, who charge for their services via limited companies.

Throughout proceedings the presenter (62) insisted all taxes were paid on the income via a partnership set up in 2012 with his ex-wife Danielle Bux.

Tribunal Judge John Brooks found the IR35 legislation did not apply because there were direct contracts between the presenter and both the BBC and BT Sport.

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Match Of The Day host Gary Lineker leaves his home in London with his dog (James Manning/PA)
Match Of The Day host Gary Lineker leaves his home in London with his dog. Photo: James Manning/PA.

The tribunal found that while Gary Lineker Media (GLM), which he set up with his then wife in 2012, was a partnership to which IR35 legislation applies, the appeal was still dismissed in full because contracts existed.

The judge said: “As a matter of law, when Mr Lineker signed the 2013 BBC Contract, the 2015 BBC Contract and the BT Sport Contract for the provision of his services, he did so as principal thereby contracting directly with the BBC and BT Sport.

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“As such, the intermediaries legislation cannot apply – it is only applicable ‘where services are provided not under a contract directly between client and the worker’.

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“In this case Mr Lineker’s services were provided under direct contracts with the BBC and BT Sport.

“Although such a conclusion might appear inconsistent with my conclusions that the intermediaries legislation can apply to partnerships… that is not the case.”

HMRC has 56 days to appeal to the Upper Tribunal (Tax and Chancery Chamber) if it wishes to do so.

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