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Case closed: HMRC settles £4.9m tax case with Gary Lineker

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December 5, 2024
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Case closed: HMRC settles £4.9m tax case with Gary Lineker
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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 tied to his presenting work with the BBC and BT Sport.

The case, initially decided in Lineker’s favour by the First-tier Tribunal (FTT), was set for 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 However, the appeal was withdrawn, and the case was settled out of court.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 undisclosed.

Dave Chaplin, CEO of IR35 compliance firm 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 akin to a sole trader. “Almost all income tax was already paid upfront,” Chaplin said, adding that Lineker also paid both employer and employee National Insurance Contributions due to the partnership structure.

The disputed amount, Chaplin clarified, was far lower than the widely reported £4.9 million, amounting instead to between £300,000 and £400,000 spread across several years. This represented the marginal difference between employer NICs and sole trader NICs.

While this chapter is closed for Lineker, the broader IR35 saga continues, with other tribunal cases still pending. “Our tribunal visits are far from finished,” Chaplin remarked.

The settlement marks the end of a contentious chapter for Lineker while underscoring the ongoing challenges around IR35 compliance and enforcement.

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