Tony Greer
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Is Fighting in Mixed Martial Arts a Business

Is an allowance taxable?

Got a potential client who is part of the MMA circuit and has recently been paid to enter a fight.  The situation seems to be that there are a number of fighters on the circuit fighting in a league where the overall winner is crowned the champion.

My client seems to be sponsored by the organisation (they provide his training etc) and has received a small sum of money for his first fight.  He likens it to the old 1970s wrestling in that, although he fought the better fight, he lost on points as he was fighting the current champion (a bit political).

From my point of view he can't be an amateur if he is being paid to turn up and fight.  He didn't receive "prize" money, just a payment for being there and I believe that makes him a professional sportsman.

Does anyone have any experience of this?

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11th Jan 2017 15:02

I don't see any reason why that wouldn't be considered taxable income, why would you doubt it is?

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13th Jan 2017 11:09

His income received is taxable, I have a couple of guys who I cross train boxing for in MMA under UAR rules who are paid to "turn up". I've looked over their situation and their "turn up" fee is taxable and deemed income regardless as an amateur.
It doesn't make him a professional sports person as such, but the income should be treated as such.

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