Sky Sports presenter handed £350k tax bill in IR35 case

Sky Sports presenter Alan Parry is the latest high-profile star to lose an appeal against HMRC in an IR35 battle.

Parry has been handed a tax bill of £356,420.37 at a First-Tier Tax Tribunal hearing, after he contested that the contracts his limited company, Alan Parry Productions Limited, he held with British Sky Broadcasting (BSkyB) reflected an employment relationship.

This was held between the tax years 2013/14 to 2018/19, however these have now been considered a self-employed status instead.

This is due to the judge ruling that Mutuality of Obligation (MOO) existed between Parry and Sky, with the presenter said to have worked under the control of the broadcaster, it was decided that the engagement belonged outside of IR35.

As a result, he was handed a tax bill of £356,420.37, made up of £222,474.40 of Income Tax and £133,945.97 in National Insurance (NI) contributions.

Judge Tony Beare said: “Mr Parry was not carrying on business on his own account when he provided services for BSkyB. Instead, he was providing his services under contracts of service,” reported the FT Adviser.

Following the result, Parry can submit another appeal and if it is accepted, the hearing could be reviewed at an upper tribunal by a different judge.

Reflecting on the hearing, Seb Maley, CEO of Qdos, shared that it highlights how critical it is to get compliance right when it comes it IR35.

“The sums alone in this case highlight the staggering cost of getting IR35 wrong. After Eamon Holmes, Gary Lineker, Lorraine Kelly and several others, Alan Parry is the latest in a long line of high-profile presenters caught up in IR35 cases with huge tax liabilities. It makes you wonder who HMRC will target next,” he said.

“Whichever way you look at it, the £356,000 tax bill handed to Parry is a firm reminder of the importance of IR35 compliance – something that contractors and businesses must prioritise.

“Digging into the details, it seems that the contracts held between Parry and Sky didn’t necessarily reflect the reality of the engagement, which HMRC will likely pay close attention to in the event of an IR35 investigation.”

Back in 2020, presenter Eamonn Holmes was handed a £250,000 tax bill, while last year Match of the Day host Gary Lineker was caught out in a IR35 case worth £4.9m.

In contrast, ITV presenter Lorraine Kelly previously won an appeal over a £1.2m demand for unpaid income tax and NI contributions.

IR35 compliance will be tackled at Global Payroll Question Time next week. There’s still time to save your free virtual space here.