Sky Sports presenter's IR35 appeal rejected
06 July 2022
Alan Parry, a presenter for Sky Sports has lost his appeal against Her Majesty's Revenue and Customs (HMRC) with regards to the IR35 rules.
Mr Parry was being paid through his limited company, Alan Parry Productions Limited between 2013 and 2019. HMRC's view was that his relationship with Sky Sports was one of a disguised employment. The defendent contested this and made the appeal, claiming to have been self-employed.
Judge Tony Beare heard the case at a tax tribunal, and judged in favour of HMRC, saying that the relationship between Sky and Mr Parry was one of employment, and that the services were provided under a contract of service and not of Mr Parry's own account. HMRC says he owes over £222,000 in tax and over £133,000 in National Insurance.
This case highlights the risks that come with misunderstanding IR35 rules. Although the above case took the worker to court, it should be noted that since April 2021, its the responsibility of medium-sized and large clients to decide whether the rules apply for workers providing services to them. Its also important to watch out for companies offering ways to work around the rules, through tax avoidance schemes.
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