The FTT has ruled in favour of Gary Lineker Media in a case that concerned whether the legislation was applicable where an individual’s services were supplied through a general partnership (Lineker and Bux v HMRC [2023] UKFTT 00340 (TC)). Danielle Bux was Mr Lineker’s former wife and they signed the relevant contracts together.
The FTT first considered the nature of the business vehicle, with reference to the Partnership Act 1890:
“Having considered the clause of the Agreement and looked at more widely in the round, I am of the view that the Agreement is consistent with the carrying on of a business in common with a view to a profit. As such, it clearly falls within the definition in s 1(1) of the 1890 Act, leading me to conclude that GLM is indeed a partnership.”
It followed from this that when Mr Lineker signed the contracts, “he did so as principal thereby contracting directly with the BBC and BT Sport”.
As a result, the FTT stated that:
“the intermediaries legislation cannot apply – it is only applicable ‘where services are provided not under a contract directly between client and the worker’ (emphasis added). In this case Mr Lineker’s services were provided under direct contracts with the BBC and BT Sport.”
Nevertheless, this did not mean that the intermediaries legislation could never apply to partnerships:
“Had the 2013 BBC Contract, the 2015 BBC Contract and BT Sport Contract not been signed by Mr Lineker, but only by Ms Bux on behalf of GLM, Mr Lineker, the worker, would, in accordance with s 5 of the 1890 Act, be bound to provide his services to either the BBC or BT Sport, the client. Such services would be provided not under a contract directly between the BBC/BT Sport and Mr Lineker – in these circumstances the direct contract would be with Ms Bux – but under arrangements involving a third party, either Ms Bux acting as Mr Lineker’s agent in her capacity as a partner in GLM or GLM itself given that a ‘third party’ includes a partnership of which the worker is a member.”
According to a BBC report, HMRC are considering an appeal.
https://www.bailii.org/uk/cases/UKFTT/TC/2023/TC08774.html
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