THE TAXMAN COMETH
Advice for Referees on declaring refereeing income to HM Revenue & Customs

All referees should take note of the following advice issued by Ian Blanchard, Head of National Referee Development:

HM Revenue & Customs - Advice from John Folwell County Business Development Manager

I have been made aware that some referees across the Country have been written to directly by HMRC in relation to the declaration of fees.

I have been liaising with our Referees Dept, Financial Regulations Dept and David West (Accountant) and can give you the following guidance which you may want to share with your officials and the network within your county which supports referees.

Referees, instructors and assessors are not employed by the County and therefore are self employed and it is the responsibility of the individual to declare any income. Individuals should be making records of payments and expenses.

This is a matter for the individuals concerned, as it is the individual tax payers responsibility to ensure that they inform HMRC of their status.

It looks as though HMRC are testing the water, and that they have obtained information possibly directly from County FAs or referees societies, or even from CFA Handbooks which contain the details. Please recommend to your officials to record all details relating to the match fees and expenses.

David West's comments that he would expect a referee at grass roots level to incur a self employed trading loss that could then be offset against other income and potentially give rise to a tax repayment.

Below he has outlined how a referee could account for his match fee and expenses….

1. Declare all income from refereeing.

2. Record and declare all expenditure including:

a. Affiliation and subscription fees

b. Kit including fitness training

c. Laundry expenses

d. Training expenses

e. Accountancy fees

f. Insurance

g. Mileage expenses at approved mileage rates including travel for:

·        Refereeing

·        CPD Training

·        Attending society meetings

·        Attending fitness training

h. Training publications

i. Postage and stationery costs

j. Flat rate allowance for “ use of home” for admin at 3156 pa w.e.f 06.04.08

k. Computer expenses and capital allowances for on line filing of reports

l. Anything else that is considered appropriate

On this basis I would expect the allowable expenses to exceed income. This would also enable referees to apply for exemption of paying Class 2 self employed NIC., albeit depending on their employment / income circumstances they may wish to pay Class 2 NIC to gives state pension and sickness benefits if appropriate.

For information on how to file a Self Assessment Tax Return, visit the HM Revenue & Customs website