UK-based sports presenter Gary Lineker has won an appeal against HMRC over a £4.9 million IR35 tax bill.

The case concerned whether IR35 applies to income received by Gary Lineker Media (GLM) for the provision of Lineker’s services to the BBC and to British Telecommunications Plc (BT Sport), for the tax years from 2013-14 to 2017-18.

HMRC was of the view that contracts held between the presenter’s partnership (owned with his ex-wife Danielle Bux) and the BBC and BT Sport were that of disguised employment. 

In the First-Tier Tribunal decision dated yesterday, Tribunal Judge Brooks 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. Accordingly, and notwithstanding GLM being a partnership, that is the end of the matter and the appeal succeeds.”

Lineker had insisted throughout the proceedings that all taxes were paid. The BBC reports that last month Lineker's lawyer James Rivett KC told a preliminary hearing in London that the presenter had been “dragged through the papers accused of not paying income tax which has been paid", and claimed there was a political element to the investigations.

In a statement on Twitter, Lineker said, “I had already paid all tax due at the top rate and happily so. I’m still totally flabbergasted as to why I was expected to pay double. Thankfully justice was done.”

An HMRC spokesperson said, "The tribunal has confirmed the off-payroll rules apply to partnerships, as we have always said. However, we do not agree with its decision that the rules cannot apply in this case and we're considering an appeal. It is our duty to ensure everyone pays the right tax under the law, regardless of wealth or status."

HMRC has 56 days to appeal to the Upper Tribunal (Tax and Chancery Chamber).

Dave Chaplin, CEO of IR35 tax compliance firm IR35 Shield, said, “Gary Lineker’s IR35 case was unique because he operated via a Limited Liability Partnership (LLP), rather than via a Limited Company. The difference meant he had already paid more income tax than HMRC was asking him to pay under the Intermediaries Legislation. No-one seems to understand why HMRC issued a tax demand for tax that was already paid.”

Seb Maley, CEO of IR35 expert Qdos, said, “The decision hinged on Lineker signing the contract himself, as both the worker and a principal of his partnership. If his partner, Danielle Bux, had signed, IR35 could have come into the equation. Just when we thought IR35 couldn’t get any more complex, this ambiguous, fundamentally flawed legislation surprises everyone.