Gary Lineker

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Abdul Abulbul Amir

13,179 posts

212 months

Tuesday 28th March 2023
quotequote all
Twinfan said:
Abdul Abulbul Amir said:
I think he was saying that HMRC challenging and losing helps create clarity of what is allowed.

BTW, multiple contracts isn't a defence against IR35.
They have lost quite a few cases and there's still not enough clarity, they can't even agree themselves what's right and what's wrong.

Multiple contracts can form part of a defence, and as I said they're a good indicator that you're operating as a contractor and not an employee.
A good indicator combined with other factors maybe, you said it was the key point. Which it isn't.

Terminator X

15,029 posts

204 months

Tuesday 28th March 2023
quotequote all
S600BSB said:
Media reporting that Gary has won his £4.9m tax battle with HMRC.
Not an employee. Good result for freelancers.

TX.

Terminator X

15,029 posts

204 months

Tuesday 28th March 2023
quotequote all
Abdul Abulbul Amir said:
Twinfan said:
paulrockliffe said:
I don't know anything about the details of this case
Then I suggest you read up on both it and IR35 before stating that it's OK for HMRC to do what they're currently doing.
I think he was saying that HMRC challenging and losing helps create clarity of what is allowed.

BTW, multiple contracts isn't a defence against IR35.
It should be though as you clearly aren't an employee when working for two or more companies at the same time.

TX.

Abdul Abulbul Amir

13,179 posts

212 months

Tuesday 28th March 2023
quotequote all
Terminator X said:
It should be though as you clearly aren't an employee when working for two or more companies at the same time.

TX.
Why not? Lots of people have two jobs.

Terminator X

15,029 posts

204 months

Tuesday 28th March 2023
quotequote all
Abdul Abulbul Amir said:
Terminator X said:
It should be though as you clearly aren't an employee when working for two or more companies at the same time.

TX.
Why not? Lots of people have two jobs.
Lots of people? I'd say the very vast majority just have one job and one employer. How about if you work for 3 different people / companies or more?

TX.

Abdul Abulbul Amir

13,179 posts

212 months

Tuesday 28th March 2023
quotequote all
Terminator X said:
Abdul Abulbul Amir said:
Terminator X said:
It should be though as you clearly aren't an employee when working for two or more companies at the same time.

TX.
Why not? Lots of people have two jobs.
Lots of people? I'd say the very vast majority just have one job and one employer. How about if you work for 3 different people / companies or more?

TX.
Yes, lots. ONS say 1.2 million people.

The substance of the relationship is assessed regardless of how many engagements a person has. Otherwise, we would all take a couple of part time jobs and bill through a ltd company to get the tax advantages.



Eric Mc

121,940 posts

265 months

Tuesday 28th March 2023
quotequote all
Terminator X said:
Abdul Abulbul Amir said:
Terminator X said:
It should be though as you clearly aren't an employee when working for two or more companies at the same time.

TX.
Why not? Lots of people have two jobs.
Lots of people? I'd say the very vast majority just have one job and one employer. How about if you work for 3 different people / companies or more?

TX.
It is not that unusual for individuals to have two (or more) employments. I have a number of clients who are in that situation.

Having multiple engagements is not a clincher as to whether IR35 should apply to any or all of them. However, it CAN be a factor in deciding how the individual and his/her company (assuming they are operating through a limited company - other "intermediaries" are available).

Over the past couple of years, HMRC has tried to clobber a number of TV personalities/presenters etc by claiming that some - if not all - of their engagments are caught by IR35. They have won a few of these cases but they have also lost a few. How the case is decided is very much predicated on the specific terms of engagment between the intermediary and the hirer. Every case is different.

nickfrog

21,075 posts

217 months

Tuesday 28th March 2023
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MrBogSmith said:
Always a pleasure watching HMRC lose.
You do realise that it also means that other tax payers have lost? It's important that HMRC lose if their case is not valid but conversely I want them to win as often as possible when it is.

Gecko1978

9,679 posts

157 months

Tuesday 28th March 2023
quotequote all
MrBogSmith said:
nickfrog said:
MrBogSmith said:
Always a pleasure watching HMRC lose.
You do realise that it also means that other tax payers have lost? It's important that HMRC lose if their case is not valid but conversely I want them to win as often as possible when it is.
Indeed.
I am glad they lost as clearly he was not BBC employee but provided a service. Sadly most firms won't let you engage as a service provider they choose not to engage that way (not a blanket ban but a clever side step of the rules). Hey ho UK paying price as Dr's won't do work now an choose to retire instead.

Terminator X

15,029 posts

204 months

Tuesday 28th March 2023
quotequote all
Abdul Abulbul Amir said:
Terminator X said:
Abdul Abulbul Amir said:
Terminator X said:
It should be though as you clearly aren't an employee when working for two or more companies at the same time.

TX.
Why not? Lots of people have two jobs.
Lots of people? I'd say the very vast majority just have one job and one employer. How about if you work for 3 different people / companies or more?

TX.
Yes, lots. ONS say 1.2 million people.

The substance of the relationship is assessed regardless of how many engagements a person has. Otherwise, we would all take a couple of part time jobs and bill through a ltd company to get the tax advantages.
And the risks. No work no pay.

TX.

Blue62

8,845 posts

152 months

Wednesday 29th March 2023
quotequote all
nickfrog said:
You do realise that it also means that other tax payers have lost? It's important that HMRC lose if their case is not valid but conversely I want them to win as often as possible when it is.
I think the underlying point is that IR35 has been a poorly conceived and overly complex tax to impose, to the point where the cost to HMRC and burden on individuals and companies has outweighed any gain. There are far more deserving targets for avoidance but contractors were viewed as a soft bet, so they went after them with a very blunt sledgehammer!

The main beneficiaries seem to be umbrella companies and accountants from what I can see.

Eric Mc

121,940 posts

265 months

Wednesday 29th March 2023
quotequote all
Agreed.

IR35 in its various forms has been around for over 20 years and many aspects of it are still mired in uncertainty.

It hasn't at all been a boon to accountants. In fact, it's been a right pain in the neck as it makes what should be fairly straightforward working arrangements much more complicated and risky.

Blue62

8,845 posts

152 months

Wednesday 29th March 2023
quotequote all
Eric Mc said:
Agreed.

IR35 in its various forms has been around for over 20 years and many aspects of it are still mired in uncertainty.

It hasn't at all been a boon to accountants. In fact, it's been a right pain in the neck as it makes what should be fairly straightforward working arrangements much more complicated and risky.
Apologies Eric, as a lapsed lawyer I didn’t mean to insult the ‘oldest profession’. I believe the roots of this malevolent tax lie in the rail companies, post privatisation, who started to engage drivers on a contract basis.

HMRC decided to do something about it and assembled a team of incompetents, to draft an incomprehensible set of regulations that are so woolly that it’s resulted in more test cases than the quality control department at Samsonite.

Abdul Abulbul Amir

13,179 posts

212 months

Wednesday 29th March 2023
quotequote all
Blue62 said:
Apologies Eric, as a lapsed lawyer I didn’t mean to insult the ‘oldest profession’. I believe the roots of this malevolent tax lie in the rail companies, post privatisation, who started to engage drivers on a contract basis.

HMRC decided to do something about it and assembled a team of incompetents, to draft an incomprehensible set of regulations that are so woolly that it’s resulted in more test cases than the quality control department at Samsonite.
Umm..accountants are the third oldest profession.

ETA
..
Unless you know something about Eric we don't.

Eric Mc

121,940 posts

265 months

Wednesday 29th March 2023
quotequote all
Abdul Abulbul Amir said:
Umm..accountants are the third oldest profession.

ETA
..
Unless you know something about Eric we don't.
Bronze Medals are fine.

Eric Mc

121,940 posts

265 months

Wednesday 29th March 2023
quotequote all
Blue62 said:
Apologies Eric, as a lapsed lawyer I didn’t mean to insult the ‘oldest profession’. I believe the roots of this malevolent tax lie in the rail companies, post privatisation, who started to engage drivers on a contract basis.

HMRC decided to do something about it and assembled a team of incompetents, to draft an incomprehensible set of regulations that are so woolly that it’s resulted in more test cases than the quality control department at Samsonite.
Part of the problem was the government themselves relaxing the set-up criteria for limited companies. As part of the Thatcherite "deregulation" criteria and to encourage entrepreneurship, the requirements for setting up limited companies and the reporting and disclosure requirements for small limited companies were massively relaxed in the early 1990s. Once upon a time you needed a minimum of three people to set up a company and each and every company in the land had to undergo a formal audit by a recognised professional auditor.

These requirements were all abolished by the mid 1990s and since 2008 you can have a bona-fide single person company with only one director and one shareholder who can be one and the same person - a weird concept for a "company" when you think about it. After all, the dictionary definition of "company" is a "group of people".

It looks like some of the relaxations of rules we have seen over the past 30 plus years are set to be reversed. For instance, the government is currently looking into the ability of small limited companies to submist reduced disclosure "abridged" accounts to Companies House. It has stated that it wants small companies to file much more revealing accounts than they currently can.

Abdul Abulbul Amir

13,179 posts

212 months

Wednesday 29th March 2023
quotequote all
Sheepshanks said:
Abdul Abulbul Amir said:
....Otherwise, we would all take a couple of part time jobs and bill through a ltd company to get the tax advantages.
For someone like Gary L - with his income - would it actually make much difference?

His Ltd company has to pay corp tax, and then he pays tax on (presumably) his largly dividend income.
Yes, if there weren't sizeable differences there wouldn't be court cases.

Lineker has also been involved with other avoidance schemes relating to film production...this has also gone through numerous court cases.

Sheepshanks

32,715 posts

119 months

Wednesday 29th March 2023
quotequote all
Abdul Abulbul Amir said:
Sheepshanks said:
Abdul Abulbul Amir said:
....Otherwise, we would all take a couple of part time jobs and bill through a ltd company to get the tax advantages.
For someone like Gary L - with his income - would it actually make much difference?

His Ltd company has to pay corp tax, and then he pays tax on (presumably) his largly dividend income.
Yes, if there weren't sizeable differences there wouldn't be court cases.

Lineker has also been involved with other avoidance schemes relating to film production...this has also gone through numerous court cases.
Sorry, I deleted my post as I found some details:

HMRC says he owed £3,621,735.90 in income tax and £1,313,755.38 in national insurance contributions over about a 5yr period.

His was in a partnership, not a Ltd.

Partners should pay tax an NI on profits shared from the partnership so where's the scope for tax and NI savings, unless they're suggesting dodgy accounting, which I don't see mentioned?

Even in a LTD, you're paying corp tax which is more than NI would be. Then tax on dividends rather than PAYE but it doesn't make much difference.

Abdul Abulbul Amir

13,179 posts

212 months

Wednesday 29th March 2023
quotequote all
Sheepshanks said:
Abdul Abulbul Amir said:
Sheepshanks said:
Abdul Abulbul Amir said:
....Otherwise, we would all take a couple of part time jobs and bill through a ltd company to get the tax advantages.
For someone like Gary L - with his income - would it actually make much difference?

His Ltd company has to pay corp tax, and then he pays tax on (presumably) his largly dividend income.
Yes, if there weren't sizeable differences there wouldn't be court cases.

Lineker has also been involved with other avoidance schemes relating to film production...this has also gone through numerous court cases.
Sorry, I deleted my post as I found some details:

HMRC says he owed £3,621,735.90 in income tax and £1,313,755.38 in national insurance contributions over about a 5yr period.

His was in a partnership, not a Ltd.

Partners should pay tax an NI on profits shared from the partnership so where's the scope for tax and NI savings, unless they're suggesting dodgy accounting, which I don't see mentioned?

Even in a LTD, you're paying corp tax which is more than NI would be. Then tax on dividends rather than PAYE but it doesn't make much difference.
OK cool, you'd be better off writing to HMRC and tell them the IR35 legislation and subsequent court cases aren't needed.

Sheepshanks

32,715 posts

119 months

Wednesday 29th March 2023
quotequote all
Abdul Abulbul Amir said:
OK cool, you'd be better off writing to HMRC and tell them the IR35 legislation and subsequent court cases aren't needed.
Well, Gary is saying now he thinks he's paid more tax than he needed to!