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 debt relating to his presenting work at the BBC and BT Sport.
The case, which was initially decided in Lineker’s favor by the First-tier Tribunal (FTT), was due to go to an Upper Tribunal hearing after HMRC appealed. However, the appeal was withdrawn and the case was settled out of court. The terms of the settlement remain confidential.
Dave Chaplin, CEO of IR35 compliance company IR35 Shield, shed light on the complexities of the case, explaining that Lineker operated through a general partnership, a structure that already subjected him to income tax similar to a sole proprietorship. “Almost all income tax had already been paid in advance,” Chaplin said, adding that Lineker paid both employer and employee national insurance contributions due to the partnership structure.
The disputed amount, Chaplin clarified, was much lower than the commonly reported £4.9 million, but instead amounted to between £300,000 and £400,000 spread over several years. This represented the marginal difference between employer NICs and sole practitioner NICs.
Although this chapter has been closed for Lineker, the wider IR35 saga continues, with other tribunal cases still pending. “Our tribunal visits are far from over,” Chaplin noted.
The settlement marks the end of a controversial chapter for Lineker while underscoring the ongoing challenges surrounding IR35 compliance and enforcement.