Sky Sports presenter, Alan Parry, has had his attractiveness from a £356,420.37 IR35 tax invoice dismissed at a Very first-Tier Tax Tribunal hearing.
This improvement highlights the worth of IR35 compliance, claims major IR35 insurance provider, Qdos.
Parry was contesting that the contracts his limited corporation (Alan Parry Productions Minimal) held with BSkyB concerning tax years 2013/14 to 2018/19 reflected an employment relationship, relatively than self-employment.
But due to the Decide using the see that Mutuality of Obligation (MOO) existed between Parry and Sky, with the presenter also claimed to have labored under the management of the broadcaster, it was decided that the engagement belonged within IR35.
It leaves Parry with a tax monthly bill of £356,420.37, made up of £222,474.40 of Earnings Tax and £133,945.97 in Nationwide Insurance plan Contributions. While Corporation Tax presently paid by Parry will be offset from this sum. The presenter could also attractiveness once more.
Qdos CEO, Seb Maley commented: “The sums alone in this case spotlight the staggering value of obtaining IR35 mistaken. Just after Eamon Holmes, Gary Lineker, Lorraine Kelly and various other folks, Alan Parry is the latest in a prolonged line of high-profile presenters caught up in IR35 scenarios with substantial tax liabilities. It makes you question who HMRC will focus on future.
“Whichever way you seem at it, the £356,000 tax invoice handed to Parry is a agency reminder of the relevance of IR35 compliance – a little something that contractors and businesses will have to prioritise.
“Digging into the aspects, it appears to be that the contracts held among Parry and Sky didn’t essentially reflect the fact of the engagement, which HMRC will very likely spend close notice to in the event of an IR35 investigation.”