McCann Media Limited v The Commissioners for HMRC
[2024] UKUT 94 (TCC)
Gary Lineker & Anor t/a Gary Lineker Media v The Commissioners for HMRC
27 March 2023
[2023] UKFTT 340 (TC)
First-tier Tribunal
Gary Lineker worked for the BBC and BT Sport through a partnership. HMRC said he owed extra tax because of IR35 rules. The court said he didn't because he had separate agreements with the TV companies, even though his partnership was involved. The court agreed that the partnership was real, but the agreements were directly with Lineker himself.
Key Facts
- •Gary Lineker provided services to the BBC and BT Sport through Gary Lineker Media (GLM).
- •GLM was initially a sole trader, then became a partnership between Gary Lineker and his then-wife, Danielle Bux, at the BBC's request.
- •The BBC and BT Sport contracted with GLM (the partnership) for Lineker's services.
- •The contracts contained clauses where Lineker personally guaranteed service provision.
- •HMRC determined that IR35 applied, leading to Lineker and Bux appealing.
Legal Principles
Intermediaries legislation (IR35) can apply to arrangements where an individual's services are supplied through a partnership.
Income Tax (Earnings and Pensions) Act 2003 (ITEPA), Section 49(1)(b), Section 49(3)
A partnership is defined as the relation which subsists between persons carrying on a business in common with a view to profit (Partnership Act 1890, Section 1(1)).
Partnership Act 1890, Section 1(1)
Every partner is an agent of the firm and his other partners for the purpose of the business of the partnership; acts of a partner bind the firm unless the person dealing with them knows the partner lacks authority (Partnership Act 1890, Section 5).
Partnership Act 1890, Section 5
The question of whether a partnership exists is a question of mixed fact and law.
Case law (cited but not specified in detail)
Outcomes
The appeal was allowed.
There were direct contracts between the BBC/BT Sport and Mr. Lineker, thus not meeting the conditions of IR35 despite GLM being a partnership.
GLM was deemed a valid partnership.
The agreement, despite unusual clauses, exhibited characteristics of a partnership under the Partnership Act 1890, including common business, profit motive, and joint responsibilities.
IR35 did not apply.
The contracts were directly between the broadcasters and Mr. Lineker, fulfilling the 'direct contract' exception in ITEPA s.49(1)(b).