Rangers hero Neil McCann loses £210k battle with taxman over TV pundit work
The ex-Scotland and Rangers FC player had appealed a ruling declaring he owed thousands of pounds in unpaid income tax and National Insurance payments to HMRC.
Former footballer turned TV pundit Neil McCann has been left with a tax bill in the region of £210k after losing a court battle with HMRC.
The ex-Scotland and Rangers FC player had appealed a tribunal ruling declaring he owed thousands of pounds in unpaid income tax and National Insurance payments.
The 49-year-old turned to TV commentary work after hanging up his boots and set up a limited company called McCann Media Limited.
READ MORE: New State Pension rates this week will not be paid to 450,000 older peopleREAD MORE: Old Firm hate crime reports confirmed by police after blockbuster Ibrox clashHe entered into agreements with broadcasting giant Sky before carrying out roles as a commentator, presenter or interviewer between 2013 and 2018.
HMRC challenged McCann’s setup and claimed he had been operating as a “disguised” employee while engaged by Sky Sports.
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McCann had argued he was working in a genuine freelance capacity and was therefore exempt from IR35 legislation.
The law aims to close a loophole in the tax system which allows workers to pay less tax by setting up a limited company or partnership.
But his appeal at the Upper Tier Tribunal hearing was dismissed on April 5 on the grounds that McCann could not be considered in business on his own account.
He is just one of a number of high-profile presenters who have been targeted by HMRC under IR35 in recent years.
Recent cases include Eamonn Holmes, Kaye Adams, Lorraine Kelly and Gary Lineker, who is currently contesting his IR35 case which is said to carry £4.9m in tax liability.
Seb Maley, CEO of tax insurance provider and IR35 consultancy firm Qdos, said: “This is the latest in a long line of IR35 cases that highlight the devastating financial impact this legislation can have.
“Neil McCann won’t have set out to break the IR35 rules but has been saddled with a tax bill in the region of £210,000.
“Fine margins and small details often decide IR35 status and in turn, whether a contractor is seen to be genuinely self-employed or a disguised employee.
“The key takeaway here is that contracts need to be rigorously reviewed from an IR35 perspective from the outset.
“The sheer complexity of this legislation means that honest mistakes are easily made, but as evidenced by this case, HMRC has little sympathy.”
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McCann's career started with Dundee in 1992 before he moved to Hearts who he helped win the Scottish Cup in 1998.
Later that year he signed for Rangers in a £2m deal. He enjoyed success at Ibrox before a later move to Southampton.
McCann, who was capped 26 times for Scotland, returned to Hearts in 2006 before quitting football on his return to Dundee.
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