In a widely reported case decided in March 2023, HMRC suffered a major defeat at the hands of former England footballer and television presenter Gary Lineker.

The case revolved around HMRC’s claim that Lineker owed £4.9 million in backdated PAYE tax and National Insurance under the off-payroll working rules (IR35).

HMRC argued that Lineker’s work for the BBC and BT Sport between 2013 and 2018 amounted to employment relationships in all but name.

However, unlike many contractors caught under IR35, Lineker operated through a partnership (Gary Lineker Media LLP) with his ex-wife, rather than a personal service company (PSC).

This key difference shaped the outcome.

The First-tier Tribunal found that because Lineker personally signed the contracts with the broadcasters, and because there was no intermediary company interposed between him and his clients, the IR35 rules were not engaged.

IR35 legislation is designed to catch disguised employment via intermediaries — typically PSCs — but not straightforward direct contracts.

Thus, while HMRC may have succeeded had a PSC existed, the partnership structure meant they could not apply IR35 rules.

The tribunal did not rule directly on whether Lineker would have been an employee if tested under traditional employment status principles — they found the IR35 framework itself simply didn’t apply.

Why This Matters to Construction Clients

The Lineker decision is a reminder of how technical and complex employment status law has become — and how critically important it is to structure contractor arrangements correctly.

For most construction firms, the main exposure remains PSC contractors, where IR35 is directly applicable.
However, the case highlights that:

• Careful attention must be paid to how contracts are structured and signed
• Simply treating someone as self-employed is not enough — HMRC (and tribunals) will look beyond labels
• In rare cases involving partnerships, the analysis may differ — but this is not a reliable strategy for avoiding IR35

Practical steps for construction businesses:

• Continue to treat PSC contractors with caution — carrying out status determinations and issuing Status Determination Statements (SDS)
• Focus on the real working relationship — control, mutuality, integration into teams, right of substitution, and financial risk are all key indicators
• Maintain documentation supporting self-employed status where claimed

Importantly, the Gary Lineker case does not change the compliance obligations for companies engaging freelance contractors via PSCs — the risks under IR35 remain alive and significant.

Clients of Ardent Tide benefit from comprehensive IR35 compliance support, ensuring that construction businesses avoid the pitfalls and complexities of employment status misclassification.