The proposed changes will mean that income from sporting testimonials and benefit matches for an employed sportsperson will be chargeable to tax, and liable to employee and employer NICs. This treatment will be subject to an exemption of £50,000 of the income received during the testimonial year, except where there is a contractual entitlement or customary right to the sporting testimonial or benefit match.
The changes will affect employed sportspersons who receive income from a sporting testimonial or a benefit match and independent testimonial committees which may have to operate Pay As You Earn (PAYE), and deduct employee and employer National Insurance contributions (NICs) on income from a sporting testimonial or a benefit match for a sportsperson.
The final deadline for submissions on the proposals is next Wed 3 February. The Alliance has been working with members from governing bodies and player associations over the past year on this issue but it remains important that all sports organisations and individuals that are likely to be affected by the changes are aware of and respond to the consultation.
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