Former Sky Sports presenter loses IR35 appeal case

Former Sky Sports presenter Dave Clark has lost his IR35 case appeal for work carried out for Sky between 2013 and 2018. The First Tier Tribunal decided that the contracts carried out by Clark’s limited company Little Piece of Paradise for Sky during the timeframe each resembled a contract that fell inside the scope of IR35.

The tribunal ruled that the contracts required personal service and demonstrated a sufficient degree of mutuality of obligation and control to fall within the IR35 remit. The case carried a tax liability of £281,084.48 and Clark will now be expected to repay the Treasury for income tax and National Insurance Contributions (NICs) for the 2013-2018 tax years.

The tribunal stated: “We are satisfied that no factors existed which were inconsistent with the affirmative conclusion that the contractual arrangements between Sky and Mr Clark would have been a contract of service for the duration of the entire relevant period from 1 August 2012 to 31 July 2018 for the purposes of the IR35 legislation.”

Dave Clark was well-known for presenting coverage of darts and boxing on Sky Sports, until his retirement last year following a diagnosis of Parkinson’s disease.

Commenting on the decision, Seb Maley, CEO of IR35 specialist Qdos, said: “The steady stream of IR35 tribunals recently shows that IR35 is top of the agenda for HMRC, who now has the remit to pursue not only contractors but also businesses for staggering tax bills. Dave Clark is another victim of the complex IR35 legislation.”

“A high-profile victory for HMRC may concern contractors and businesses, but the fact of the matter is that Clark’s working relationship with Sky – like many other presenters – was quite different to ones held by typical contractors. It’s also possible that Clark may appeal the case again and overturn this decision.”

“This result shouldn’t dissuade businesses from engaging contractors, the vast majority of whom – in our experience – are truly self-employed. For example, 87% of more than 30,000 contractors we have rigorously assessed on behalf of businesses belong, in our expert opinion, outside IR35.”

Maley added: “Ultimately, the judge’s view was that Clark was subject to control by Sky, who also paid him whether he worked or not. What’s more, he was restricted from presenting for other companies, which the judge believed painted a picture of employment rather than self-employment. But to reiterate, this certainly isn’t the case across the board.”