The tax dispute arose after HM Revenue and Customs (HMRC) claimed Barnes owed £695,000 in back taxes for the years 2013 to 2019, arguing that his contracts with Sky made him taxable as if he were an employee. While Barnes won an initial appeal in 2023, the Upper Tribunal reversed that decision, agreeing with HMRC’s argument that the lower tribunal had erred in considering irrelevant factors.
Key Factors Leading to Decision
The Upper Tribunal judges criticized the First-Tier Tribunal for taking into account details such as distinctions between Barnes’ roles as a presenter and commentator, the nature of his annual fee, and his involvement in non-Sky broadcasts. They ultimately concluded that the employment-like aspects of the contract outweighed Barnes’ independent freelance activities outside his work with Sky.
HMRC welcomed the ruling, reiterating its commitment to treating taxpayers fairly. Barnes’ legal team has yet to comment on the outcome.
