HMRC’s Appeal in Gary Lineker IR35 Case Signals a Battle for Tax Regulation

In a dramatic turn of events, HMRC have decided to appeal the previous decision made in Gary Lineker’s high-profile IR35 case.


Lineker, former England striker and a renowned sports personality, had previously won his legal battle against HRMC over a £4.9m tax bill. However, the tax authorities are determined to challenge the decision, which has prompted concerns over the potential misuse of partnerships to bypass IR35 legislation. This appeal sets the stage for another intense legal showdown that could have far-reaching implications for both Lineker and the broader freelancer community.

The Initial Victory:

In March, Gary Lineker emerged victorious in his legal dispute with HMRC. The case revolved around a £4.9 million tax bill relating to Lineker’s income between 2013 to 2014 and 2017 to 2018. The former England striker argued that he should be classified as a freelancer providing services through his personal company, rather than an employee. Judge John Brooks concurred with Lineker’s position, stating that the direct contracts between Lineker and the BBC and Lineker and BT Sport exempted him from the intermediaries legislation, commonly known as IR35.

HMRC’s Decision to Appeal:

Despite Lineker’s triumph, HMRC has decided to challenge the ruling. The loss was costly to HMRC, with it being such a high profile case, with substantial media coverage, and HMRC having lost a number of other significant cases recently. However, HMRC’s main motivation appears to be their concern that Lineker’s victory could establish a precedent for utilising partnerships to evade IR35 regulations. The appeal signals HMRC’s determination to rectify what they perceive as a potential loophole in the tax legislation.

Consequences of the Appeal:

The decision to appeal Gary Lineker’s IR35 case holds significant implications for various parties involved. Firstly, it puts Lineker’s victory in jeopardy, potentially subjecting him to a reassessment of his tax status. Should HMRC succeed in their appeal, it would have ripple effects on the freelancer community, particularly those who rely on partnerships to structure their engagements. The outcome of this appeal could redefine the boundaries of IR35 legislation and influence future tax disputes involving similar arrangements.

Misconceptions and Complexities:

Seb Maley, CEO of our partner and IR35 specialist consultancy firm Qdos, highlights a common misconception surrounding the applicability of IR35 to partnerships. While acknowledging that partnerships can fall under IR35 in specific circumstances, Maley emphasises the need for clarity on the matter. “It can, but only in certain circumstances. HMRC won’t want to lose a case involving such a high-profile individual either, which in my opinion is another reason why they’ve chosen to appeal.”

The Road Ahead:

As of now, no official hearing date has been scheduled for the appeal. It remains uncertain whether the original decision will be upheld or overturned. Maley suggests that the nuanced nature of the original decision could potentially lead to its overturning, although it would not directly impact Lineker’s status. Instead, the case may need to be remitted to a First-Tier hearing for a comprehensive discussion of Lineker’s status.

However, overturning the original ruling without reopening the entire case could prove challenging, making the appeal process a critical juncture for HMRC to reinforce their stance on tax compliance.


The appeal of Gary Lineker’s IR35 case adds a new chapter to the ongoing debate surrounding the tax status of freelancers and the potential misuse of partnerships. HMRC’s determination to challenge the original decision demonstrates their commitment to ensuring the proper application of IR35 legislation. As the legal battle intensifies, the outcome of the appeal will have far-reaching consequences, shaping the future landscape for freelancers and tax regulations in the United Kingdom. The freelancer community, legal experts, and industry observers eagerly await the resolution of this closely watched case.

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