Sky Sports presenter Alan Parry is facing a significant IR35 tax bill after his appeal was dismissed in a First-Tier Tax Tribunal hearing. The ruling means that Parry is now facing a total IR35 tax bill of £356,420.37.
Parry’s appeal contested claims that contracts between BSkyB and his own limited company, Alan Parry Productions Ltd, during the tax years from 2013/14 to 2018/19 were based around an employment relationship, rather than reflecting a self-employed arrangement.
However, the judge ruled that Mutuality of Obligation (MOO) existed between Sky and Parry’s limited company. As Parry was ruled to have worked under Sky’s control, the First-Tier Tax Tribunal ruled that the working relationship should be classed as inside IR35.
As a result, Parry now faces paying a sizeable IR35 tax bill comprised of £222,474.40 in income tax, along with National Insurance Contributions totaling £133,945.97. Corporation Tax payments already made by Parry will be offset from the final figure.
Commenting on the ruling, Qdos CEO Seb Maley said: “The sums alone in this case highlight the staggering cost of getting IR35 wrong. After Eamon Holmes, Gary Lineker, Lorraine Kelly and several others, Alan Parry is the latest in a long line of high-profile presenters caught up in IR35 cases with huge tax liabilities. It makes you wonder who HMRC will target next.”
“Whichever way you look at it, the £356,000 tax bill handed to Parry is a firm reminder of the importance of IR35 compliance – something that contractors and businesses must prioritise.”
“Digging into the details, it seems that the contracts held between Parry and Sky didn’t necessarily reflect the reality of the engagement, which HMRC will likely pay close attention to in the event of an IR35 investigation.”
Despite the ruling, reports have indicated that Parry could appeal against the bill again.
