Stuart Barnes, a former rugby player turned Sky Sports pundit, has been hit with a significant tax bill of approximately £700,000 following a ruling by the Upper Tribunal that he was working as a “disguised employee” during his freelance work for the broadcaster.
The decision overturns a 2023 First-Tier Tribunal verdict that had initially ruled in Barnes’s favour. The new judgment by the Upper Tribunal concluded that Barnes’s work arrangement with Sky Sports between 2013 and 2019 fell within the scope of IR35 legislation, which governs off-payroll working rules.
Barnes, who has earned the nickname “The Voice of Rugby,” was found to have been incorrectly operating as a self-employed contractor rather than an employee of Sky.
The tribunal highlighted several factors in its decision, including the long duration of Barnes’s contract, the lack of a right to provide a substitute, Sky’s right to call on his services for 228 days a year, and the exclusivity of his relationship with the broadcaster. These factors collectively led the judges to determine that Barnes’s working relationship with Sky was more akin to that of an employee rather than a self-employed freelancer.
Right of substitution
In their judgment, Judge Thomas Scott and Judge Mark Baldwin stated: “The long duration of the contract, the absence of a right of substitution, the right of first call for 228 days a year (as varied), the rights of exclusivity, the absence of financial risk, and the overall length of the relationship with Sky are factors which in our opinion collectively outweigh the right of Mr. Barnes to exploit his work product, his agreement regarding availability, and the fact that he was in business on his own account outside his relationship with Sky.”
Seb Maley, CEO of IR35 compliance firm Qdos, weighed in on the verdict, emphasising the complexities of IR35 legislation and the importance of ensuring compliance. “This verdict shines the spotlight directly on the many nuances of the IR35 legislation – not to mention the importance of compliance, given the sheer sums involved,” Maley said.
“In business on his own account”
He added that while Barnes had initially been deemed to be “in business on his own account” by the First-Tier Tribunal, the Upper Tribunal’s decision was influenced by different factors, such as the lack of a right to provide a substitute and Sky’s exclusive control over his services. Maley also stressed that both freelancers and businesses must conduct thorough IR35 assessments at the start of any working relationship and continuously review the status as the relationship evolves.
Barnes is the latest high-profile figure to be scrutinised by HMRC under IR35 rules, with several other media personalities, particularly those associated with Sky, facing similar challenges.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
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