Former SKY Sports presenter Dave Clark has lost his IR35 tribunal appeal against HM Revenue and Customs. The decision relates to services provided by Mr Clark, via his Limited company, Little Piece of Paradise, for the five tax years between 2013 and 2018.
The former presenter of SKY Sports’ Darts, was found to owe both income tax payments and National Insurance Contributions (NICs) to the taxman after losing his appeal. It is a decision which will see him saddled with a tax bill in the region of £281,000.
Judge Heidi Poon dismissed the appeal in principle saying that Mr Clark should have been paid directly by SKY as an employee. Instead his pay was passed through his own personal service company. The decision was based on Mutuality of Obligation (MOO) between the presenter and SKY, which classed the engagement as a contract of service. In particular, relating to Mr Clark being required to present SKY’s darts coverage.
The tribunal stated that there was a contractual payment per annum in return for his services, but no obligation to provide continuous work on SKY’s part. The tribunal also stated that, if Mr Clark had refused for failed to perform his contracted services, he would have been in breach of contract.
There have been a number of IR35 cases made against media celebrities and presenters, with mixed results. Kaye Adams and Lorraine Kelly winning their cases, but with Paul Hawksbee and Eamonn Holmes recently losing their cases against HMRC.
Another recent high profile case is that of Gary Lineker. The England football legend who won 80 caps and scored 48 international goals, has also been accused by HMRC of passing himself off as a freelance TV presenter.
IR35 is a complex legislation and many people who operate in the media spotlight who previously thought they were not affected by the legislation are finding that they are.
To find out more about the complexities of IR35 in the private sector, how IR35 might affect you, and how we can help. Please visit our IR35 Hub at https://www.caunceohara.co.uk/ir35/