The dust has just recently settled on the IR35 reform’s first case in the private sector. The case took place in April when Gary Lineker’s £4.9 m IR35 case went public. Contractors and experts alike waited with bated breath to find out what the result would be.
This has been yet another example of IR35 going after high-profile contractors for big cases. Just like in the cases of Eamonn Holmes, Lorraine Kelly, Kaye Adams, and others, IR35 investigations targeted at high-profile cases HMRC is interested in calling attention to famous contractors who are potentially making errors in their tax liability.
The difference, in this case, is that Lineker did, in fact, owe money for working inside of IR35 when he worked presenting Match of the Day between 2013-2017 and then also when he worked for UEFA Champions League football on BT Sport between 2025 and 2018.
Because his company is a partnership and not a PSC, he has already paid most of the £4.9 m that he owes. He will only owe £1m at the conclusion of this trial. He is adamant that he operated as a freelancer through his company during the entirety of his contract, but the end result of the case has yet to be decided.
HMRC may have overlooked factors related to his case, but the fact remains that Lineker does appear to have been correct in his status determination for these two contracts. HMRC will try and state that MOO was in effect at the time, but there has been no information about that part of the case at this time.
Lineker’s Case Illustrates Issues with IR35
This is just one of the many instances where IR35 is not clear enough for contractors to be sure of their status determinations. Lineker appears on paper to be a true freelancer working through his own company who is not controlled by the BBC.
However, the question of MOO and other factors that are not clearly presented in the rules can lead to many instances of this kind of issue. This is the kind of trouble that will likely lead to more and more contractors electing to work via umbrellas to avoid paying tax if their status was judged incorrectly.
