Football pundit’s hypothetical contact is one of service

McCann Media Ltd (MML) was the personal service company (PSC) of Neil McCann a former Scottish Premiership footballer. He provided services through MML to British Sky Broadcasting Ltd (Sky). HMRC considered the IR35 rules (ITEPA 2003 Part 2 ch 8) applied to these services and issued determinations and notices for PAYE and National Insurance contributions.

The taxpayer appealed.

The First-tier Tribunal examined the contracts between Sky and MML and concluded they ‘largely’ reflected the agreement between the parties. The judges did not accept that Mr McCann was paid only for work done – he regularly invoiced the agreed fee irrespective of the football games played and this continued outside the season. His six-week appointment as interim manager of Dundee FC during the term of the Sky contracts did not affect this agreement.

Next the tribunal had to ascertain the terms of the hypothetical contract between Sky and Mr McCann....