Gary Lineker wins £4.9m tax appeal against HMRC
Gary Lineker has won his £4.9m tax appeal against HMRC.
The Match Of The Day host was pursued for the cash by tax authorities, who said it should have been paid on income received between 2013 and 2018.
HMRC said Lineker, 62, should have been classed as an employee of the BBC and BT Sport for his presenting duties, rather than as a freelancer.
The bill came as part of legislation known as IR35, designed to crack down on tax avoidance by so-called disguised employees, who charge for their services via limited companies. The aim is for contractors or freelancers to pay broadly the same income tax and national insurance as an employee.
Lineker had maintained that all taxes were paid on his income via a partnership, Gary Lineker Media (GLM), set up with his ex-wife Danielle Bux in 2012.
His lawyer James Rivett KC told a preliminary hearing in London in February that the star had been “dragged through the papers accused of not paying income tax which has been paid”, and claimed there was a political element to the investigations.
Tribunal judge John Brooks has now found that while GLM was a partnership to which IR35 legislation applies, the appeal should be granted because contracts existed between the presenter and both the BBC and BT Sport.
The judge said: “As a matter of law, when Mr Lineker signed the 2013 BBC contract, the 2015 BBC contract and the BT Sport contract for the provision of his services, he did so as principal thereby contracting directly with the BBC and BT Sport.
“As such, the intermediaries legislation cannot apply – it is only applicable ‘where services are provided not under a contract directly between client and the worker’.
“In this case Mr Lineker’s services were provided under direct contracts with the BBC and BT Sport.
“Although such a conclusion might appear inconsistent with my conclusions that the intermediaries legislation can apply to partnerships… that is not the case.”
He added that he could “dispose of the entire appeal in the appellants’ favour and the appeal is therefore allowed”.
Following the decision, Lineker tweeted: “Thanks for all the congratulatory messages. I am pleased that the Tribunal has endorsed my contention that I have not failed to pay any taxes or National Insurance by reason of the IR35 rules.”
HMRC is considering appealing.
“The tribunal has confirmed the off-payroll rules apply to partnerships, as we have always said,” a spokesperson said. “However, we do not agree with its decision that the rules cannot apply in this case and we’re considering an appeal.”
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The HMRC spokesperson added: “It is our duty to ensure everyone pays the right tax under the law, regardless of wealth or status.”
The Lineker-BBC row
Lineker is Match Of The Day’s longest-serving presenter and has been on the football show since the 1990s following a successful football career for clubs including Leicester City, Tottenham and Barcelona, as well as for England.
Earlier in March, the star was forced off air in a row over a tweet criticising the government’s migration policy, with his co-presenters standing down from the show in solidarity.
He returned the following week following talks with the BBC, which has announced a review, led by an independent expert, on its social media guidance – with a focus on how it applies to freelancers outside news and current affairs.
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What are the BBC impartiality rules?
The football pundit topped the BBC’s highest paid star list in 2022, earning between £1,350,000 and £1,354,999 for his work on Match Of The Day, Sports Personality Of The Year, and other programmes.
Lineker’s tax case follows similar attempts by HMRC to target other broadcasters including Lorraine Kelly and Kaye Adams.
As the decision on the presenter’s appeal was announced, former BBC director-general Lord Birt appeared before the digital, culture, media and sport committee (DCMS) as part of a session in the wake of his three-day Match Of The Day suspension.
He told the hearing that presenters such as Lineker who are “inextricably bound up with an important BBC programme” should have to abide by impartiality rules.
Asked whether he thought viewers appreciated the difference between news staff and freelancers, Lord Birt said: “I am sure the public doesn’t even think about it.
“What it knows is that this (Match Of The Day) is one of the most important BBC programmes and this is a well established presenter.
“And yes, he was one of England’s great centre-forwards but let’s not kid ourselves. His status, his standing and his power arises above all else from presenting this extremely important programme.”
Acknowledging public opinion over Lineker’s tweet was split, Lord Birt added: “I don’t ever think the damage in respect to the BBC is terminal because it has got too much credit in the bank.”
Manchester Pride has been put into voluntary liquidation – and the future of the event is now in doubt.
Artists and suppliers are owed money following this year’s event, according to an Instagram statement issued by Pride’s board of trustees.
Pride’s organisers cited rising costs, declining ticket sales and an unsuccessful bid to host Euro Pride as factors behind the decision.
The organisation is a charity and limited company that campaigns for LGBTQ+ equality and offers training, research, policy analysis, advocacy and outreach activities, as well as putting on the annual parade and live event.
The statement said: “It is with enormous sadness that we announce that Manchester Pride has started the legal process of voluntary liquidation.
“A combination of rising costs, which are affecting the entire events and hospitality industries, declining ticket sales and an ambitious refresh of the format aimed to challenge these issues, along with an unsuccessful bid to host Euro Pride, has led to the organisation no longer being financially viable.
“We regret the delays in communicating the current situation; however, we were keen not to jeopardise financial opportunities while our discussions were ongoing.
“We were proactive and determined to identify solutions to the financial issues. We’ve been actively working with several partners, including legal and financial advisors, to do everything we could to find a positive solution.
“We had hoped to be able to find a way to continue, and, most importantly, to support our artists, contractors and partners.
A scene from Manchester Pride 2024. The future of the event is in doubt. Pic: AP
“Despite our best efforts, sadly, this has not proved to be possible. We are sincerely sorry for those who will now lose out financially from the current situation.
“The volunteer board of trustees are devastated at this situation and sad to share that our staff team will be made redundant.
“We, along with the team, have put our hearts and souls into the celebration and community activities over two decades and are very distressed at the position in which we find ourselves.”
“The Manchester Pride team have now handed over the details of suppliers and artists who are owed money to the liquidators who will be handling the affairs of the charity and contacting everyone.”
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Manchester Pride’s financial difficulties were first reported by The Mill last week.
Last year, industry experts warned that without urgent intervention the UK looks set to see “the end of a clubbing era that has defined generations”.
Research found that in the last four years the UK had lost 37% of its clubs, which works out at about 10 clubs closing each month.
Sky News has previously reported how small, independent music venues have been closing at the rate of one per week and pubs have been shutting at a rate of one per day.
A White House official has said there is “zero truth” to a report that Donald Trump is considering commuting Sean “Diddy” Combs’s prison sentence as early as this week.
On Monday, US entertainment site TMZ reported the US president was “vacillating” on whether or not to reduce the music mogul’s sentence, citing a “high-ranking White House official”.
Combs was sentenced to 50 months in prison and given a $500,000 fine at a hearing on 3 October, after being found guilty of prostitution charges relating to his former girlfriends and male sex workers at the end of his high-profile trial in the summer.
Earlier this week, the 55-year-old’s legal team filed a legal document officially signalling their intention to appeal.
Combs was in tears during his sentencing hearing. Pic: AP/ Elizabeth Williams
Now, a White House official has pushed back on TMZ’s report about a possible commutation.
There is “zero truth to the TMZ report, which we would’ve gladly explained had they reached out before running their fake news”, the official told NBC, Sky News’ US partner.
Mr Trump, “not anonymous sources, is the final decider on pardons and commutations”, the official added.
Casey Carver, a spokesperson for TMZ, said in a brief statement: “We stand by our story.”
In an update to the story on the outlet’s website, the news site said: “The White House Communications Office is saying our story is not true. We stand by our story. Our story is accurate.”
Lawyers for Combs did not immediately return a request for comment about the disparity between the White House statement and TMZ’s reporting. However, they previously told NBC News they had been pursuing a pardon.
What has Donald Trump said?
In August, before Combs’s sentencing, Mr Trump said in an interview that he had been approached about a possible pardon but implied he would not be granting one.
“You know, I was very friendly with him. I got along with him great and he seemed like a nice guy. I didn’t know him well,” the president said. “But when I ran for office, he was very hostile.”
When asked if he was suggesting he would not pardon Combs, he replied: “I would say so.”
“When you knew someone and you were fine, and then you run for office, and he made some terrible statements. So, I don’t know, it’s more difficult,” Mr Trump said. “Makes it more – I’m being honest, it makes it more difficult to do.”
The president has issued several pardons and commutations in his second term – including to around 1,500 criminal defendants in connection with the attack on the US Capitol in January 2021.
Last week, he commuted the sentence of disgraced former Republican congressman George Santos.
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Combs was found guilty of two counts of transportation for prostitution in July, but was cleared of more serious charges of racketeering conspiracy and sex-trafficking, which carried potential life sentences.
Ahead of his sentencing, he told the court he admitted his past behaviour was “disgusting, shameful and sick”, and apologised personally to Cassie Ventura and “Jane”, another former girlfriend who testified anonymously during the trial.
He told the court he got “lost in my excess and lost in my ego”, but since his time in prison he has been “humbled and broken to my core”, adding: “I hate myself right now… I am truly sorry for it all.”
The rapper is serving his sentence at Brooklyn’s Metropolitan Detention Center, where his team has said conditions are “inhumane”.
He has asked to be moved to a low-security federal prison in New Jersey, but the Bureau of Prisons has yet to approve the request.
Entertainment
Police should focus on ‘tackling real crime’, No 10 says, after Met Police halts non-crime hate probes
Officers should focus on “tackling real crime and policing the streets”, Downing Street has said – after the Metropolitan Police announced it is no longer investigating non-crime hate incidents.
The announcement by Britain’s biggest force on Monday came after it emerged Father Ted creator Graham Linehan will face no further action after he was arrested at Heathrow Airport on suspicion of inciting violence over three posts he made on X about transgender issues.
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Sir Keir Starmer’s spokesman said police forces will “get the clarity they need to keep our streets safe” when a review of non-crime hate incidents by the National Police Chiefs’ Council and College of Policing is published in December.
“The police should focus on tackling real crime and policing the streets,” he said.
“The home secretary has asked that this review be completed at pace, working with the National Police Chiefs’ Council and the College of Policing.
“We look forward to receiving its findings as soon as possible, so that the other forces get the clarity they need to keep our streets safe.”
He said the government will “always work with police chiefs to make sure criminal law and guidance reflects the common-sense approach we all want to see in policing”.
After Linehan’s September arrest, Met Police Commissioner Sir Mark Rowley said officers were in “an impossible position” when dealing with statements made online.
File pic: iStock
On Monday, a Met spokesperson said the commissioner had been “clear he doesn’t believe officers should be policing toxic culture war debates, with current laws and rules on inciting violence online leaving them in an impossible position”.
The force said the decision to no longer investigate non-crime hate incidents would now “provide clearer direction for officers, reduce ambiguity and enable them to focus on matters that meet the threshold for criminal investigations”.
Justice minister Sarah Sackman said it is “welcome news” the Met will now be focusing on crimes such as phone snatching, mugging, antisocial behaviour and violent crime.
Asked if other forces should follow the Met’s decision, she said: “I think that other forces need to make the decisions that are right for their communities.
“But I’m sure that communities up and down the country would want that renewed focus on violent crime, on antisocial behaviour, and on actual hate crime.”
The Met said it will still record non-crime hate incidents to use as “valuable pieces of intelligence to establish potential patterns of behaviour or criminality”.
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