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Bryan Robson secures partial victory in IR35 dispute with HMRC

by January 22, 2025
January 22, 2025
Bryan Robson secures partial victory in IR35 dispute with HMRC

Former England football captain Bryan Robson has succeeded in most of his appeal against HMRC over alleged IR35 breaches relating to his work as a Global Ambassador for Manchester United between 2015/16 and 2020/21.

The First-tier Tax Tribunal upheld Robson’s challenge in four of the six disputed tax years, though found that part of his earnings from December 2019 to April 2021 should have been treated as deemed employment income.

The tribunal has ordered HMRC and Robson to determine which portion of those earnings stems from image rights, with the remainder subject to additional tax under IR35 rules. Robson’s case, dating back nearly a decade, highlights the complexities of the IR35 legislation, designed to establish whether individuals are effectively self-employed or should be treated as employees for tax purposes.

Dave Chaplin, CEO of IR35 Shield, an IR35 compliance firm, attended the hearing and said: “Robson is now a member of another unfortunate club, the ‘IR35 Decade Club’ of individuals who, due to the unworkable IR35 legislation, was left in a position of tax uncertainty almost 10 years after his services were provided.”

Chaplin noted the extensive legal and administrative costs of the four-day tribunal, suggesting that the final tax bill may not outweigh HMRC’s own expenses in pursuing the case.

Chaplin further criticised the off-payroll legislation that replaced the original IR35 framework, stating it burdens UK businesses and hinders growth.

“The Government and taxing authorities should be celebrating the entrepreneurial spirit of freelancers who simply want to be their own boss, not vilifying them…with damaging ideologically-led legislation which curbs their freedoms,” he said.

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Bryan Robson secures partial victory in IR35 dispute with HMRC

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