Rugby commentator Stuart Barnes has lost his battle to avoid a nearly £700,000 tax bill after a tribunal ruled his contract with Sky Sports resembled an employer-employee relationship. The Upper Tribunal’s decision on Wednesday upheld a previous ruling that Barnes owed the tax based on his longstanding deal with the broadcaster.
Tribunal Deems Contract Employment-Like
Barnes, a former rugby union star turned commentator, had his company, S&L Barnes Ltd., act as an intermediary in his contract with Sky. However, the Upper Tribunal found that if the contract had been directly between Barnes and Sky, it would have constituted employment, making Barnes liable for additional taxes.
Judges Thomas Scott and Mark Baldwin pointed to key factors in their ruling, including the exclusivity of the contract, Sky’s right of “first call” on Barnes’ services, and Barnes’ inability to delegate his work to a substitute. “The evaluation of all relevant admissible factors… leads us to conclude that the relationship would have been one of employment,” they wrote.
Stuart Barnes £700K Tax Bill : Background on Barnes’ Tax Dispute
Barnes worked as a commentator for Sky Sports for 25 years, between 1994 and 2019. He also freelanced as a writer and commentator for other outlets, including The Times and for major rugby tournaments like the 2015 and 2019 Rugby World Cups.
