In March 2023 the First-tier Tribunal (FTT) found that Gary Lineker’s work for the BBC and BT Sport was not caught by the IR35 rules, as he provided services under a direct contract rather than through an intermediary.

The taxpayer worked through a general partnership in which he and his former wife were the two partners.  He provided services to the BBC and BT Sport from 2013 under contracts signed by both Gary Lineker and his former wife in their capacity as partners of a general partnerhip.

On analysis of the legislation, the FTT found that IR35 can apply to partnerships as well as personal service companies, as the legislation specifically provides for this, but that it could not apply to contracts made directly between the worker and the recipient of services.  There was no intermediary in a contract signed by the worker rather than a personal service company.  The answer may have been different if a partnership with legal personality, such as an LLP, had be used or where Gary Lineker’s former wife had alone signed the agreements with the BBC and BT Sport.

This the first case involving IR35 and a partnership to come to tribunal.

The decision can be found at: The Finance & Tax Tribunal (tribunals.gov.uk)

Easier reading can be found at: Gary Lineker wins appeal over £4.9m tax bill – BBC News

We are experienced with reviewing and analysing contracts to determine whether they fall within the tax rules generally known as IR35.  Please contact us where you may be uncertain how to treat arrangements that may involve intermediaries.