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The tax and National Insurance (NI) treatment of professional sportspeople’s income from testimonials and benefit matches is to be put on a firm legislative basis.
The government move comes as the result of HMRC view that the handling of such income does not reflect the statutory position.
A technical note and call for evidence issued in October proposed that the Revenue rewrite its guidance on the treatment of testimonial and benefit games.
The tax and National Insurance (NI) treatment of professional sportspeople’s income from testimonials and benefit matches is to be put on a firm legislative basis.
The government move comes as the result of HMRC view that the handling of such income does not reflect the statutory position.
A technical note and call for evidence issued in October proposed that the Revenue rewrite its guidance on the treatment of testimonial and benefit games.
The tax department considered the responses and decided not to introduce a statutory exemption. A new consultation suggests that payments should be subject to income tax and class 1 NI.
The government is interested in views on introducing a partial exemption or de minimis amount, suggesting that legislation could provide that the first £x amount is treated as exempt from tax and subject to an NI disregard for the same amount, with only the income in excess of the threshold attracting levies.
Such an exemption would offer protection to those for whom taxation of the proceeds from a testimonial would have a disproportionate effect.
Responses to the consultation should be emailed no later than 2 September.
