HMRC hands ex-England football captain Brian Robson defeat in IR35 tax case 

Former Manchester United and England captain, Brian Robson, has lost his IR35 case, after a First Tier Tribunal found that he had been operating as a ‘disguised employee’ in his ambassadorial role at his former club

This decision leaves Robson with a tax bill made up of employment taxes which HMRC believes ought to have been paid between December 2019 to April 2021.

The amount, however, has not been disclosed, due to the fact HMRC included separate income Robson received through image rights within its calculations.

While Robson started his role as an ambassador in 2008, the contractual terms referenced Man United engaging him personally (as opposed to engaging his company, Bryan Robson Limited).

This meant the years up to 2019 weren’t scrutinised under IR35.

The case related to the work Robson carried out as an ambassador for Manchester United. Robson was paid £150,000 every six months and was obliged to make 35 personal appearances at functions and events as a minimum, every six months.

However, HMRC took the view that Robson provided his services to his former club in a way that reflected employment, not self-employment and therefore belonged inside the scope of the IR35 legislation. The First Tier Tribunal judge agreed.

The reasons for this include:

• Income: Robson was economically dependent on Man United, which made up 87% of his income (£171,000) in the ‘19/20 tax year and 94% of his income (£319,000) in the ‘20/21 tax year
• Personal service: There was no substitution clause and Robson provided his services in a personal capacity
• Part and parcel: Robson had a strong connection to the club for many years
• Length of service: his engagement, as an ambassador, had been running for over a decade

Seb Maley, CEO of IR35 specialist, Qdos, said, “This high profile HMRC win underscores the importance of ensuring compliance – whether you’re a freelancer, contractor or business engaging these workers. It’s a complex case that brings the many nuances of the IR35 legislation into sharp focus.

“But make no mistake, this wasn’t your average freelancer and client relationship. Man United controlled many elements of this engagement – a hallmark of an employer-employee relationship. Ideally, freelancers and contractors working outside of IR35 need a high level of autonomy to be considered truly self-employed.

“There’s a lot to learn from this case, which incidentally might well yet be appealed. First, that contracts need to be watertight, with each party in agreement of the terms – and with that, IR35 status – from the word go. After all, the first port of call for HMRC in an investigation is the contract itself.”