HMRC has confirmed the settlement of its high-profile IR35 tax case with Gary Lineker, ending a long-running dispute over a £4.9 million tax liability linked to his presenting work with the BBC and BT Sport.
The case, initially upheld by Lineker by the First-tier Tribunal (FTT), was adjourned to the Upper Tribunal after HMRC appealed. However, the plea was withdrawn, and the case was settled out of court. The terms of the compensation remain undisclosed.
Dave Chaplin, CEO of IR35 Compliance Company, IR35 Shield, shed some light on the complexity of the case, explaining that Lineker was working in a general partnership, a structure that already charged him sole trader income tax. “Almost all the income tax was paid in advance,” Chaplin said, adding that Lineker also paid employer and employee National Insurance Contributions as a result of the partnership structure.
The disputed sum, Chaplin clarified, was much lower than the £4.9 million widely reported, instead being between £300,000 and £400,000 spread over several years. This represents a significant difference between employer NICs and sole trader NICs.
Although this chapter is closed for Lineker, the wider IR35 continues, with other court cases ongoing. “Our journey to the courts is far from over,” Chaplin noted.
The settlement marks the end of a controversial chapter for Lineker while underscoring the ongoing challenges around IR35 compliance and implementation.
