Sky Sports activities presenter Alan Parry hit with £356,420 IR35 tax invoice

Sky Sports activities presenter, Alan Parry, has had his attraction in opposition to a £356,420.37 IR35 tax invoice dismissed at a First-Tier Tax Tribunal listening to.

This improvement highlights the significance of IR35 compliance, says main IR35 insurer, Qdos.

Parry was contesting that the contracts his restricted firm (Alan Parry Productions Restricted) held with BSkyB between tax years 2013/14 to 2018/19 mirrored an employment relationship, quite than self-employment.

However as a result of Decide taking the view that Mutuality of Obligation (MOO) existed between Parry and Sky, with the presenter additionally mentioned to have labored below the management of the broadcaster, it was determined that the engagement belonged inside IR35.

It leaves Parry with a tax invoice of £356,420.37, made up of £222,474.40 of Earnings Tax and £133,945.97 in Nationwide Insurance coverage Contributions. Though Company Tax already paid by Parry will likely be offset from this quantity. The presenter may additionally attraction once more.

Qdos CEO, Seb Maley commented: “The sums alone on this case spotlight the staggering price of getting IR35 flawed. After Eamon Holmes, Gary Lineker, Lorraine Kelly and a number of other others, Alan Parry is the most recent in a protracted line of high-profile presenters caught up in IR35 instances with large tax liabilities. It makes you surprise who HMRC will goal subsequent.

“Whichever method you have a look at it, the £356,000 tax invoice handed to Parry is a agency reminder of the significance of IR35 compliance – one thing that contractors and companies should prioritise.

“Digging into the small print, plainly the contracts held between Parry and Sky didn’t essentially mirror the fact of the engagement, which HMRC will probably pay shut consideration to within the occasion of an IR35 investigation.”