Footballers Testimonials Taxable?

Footballers Testimonials Taxable?

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Is the money a footballer receives from their testimonial taxable? If so how ?

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By Duhamel
05th Mar 2015 13:31

EIM64120
Seems to be earnings from employment, in most cases.

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By duncanedwards
05th Mar 2015 17:42

Think the point is
Not read the EIM but believe these days that players effectively get them as a contractual entitlement which, other considerations aside, would presumably create a tax issue.

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RLI
By lionofludesch
05th Mar 2015 19:12

Rugby League

I've dealt with three Rugby League testimonials this year.

First, you need to look at the player's contract to see whether he's entitled to a testimonial or whether it's at the grace and favour of the governing body. 

Assuming there's no entitlement, some of the income will be taxable, some won't be.

Some will be outright trading - player's Testimonial Committee (not the player, obviously) buy meals at a Testimonial Dinner and sell them to admiring punters.

Some won't be.  The player might, for example, get some raffle prizes donated.  The raffle proceeds are exempt.

Outright donations - bucket collection at its most basic - are exempt.

An auction of something given to the Testimonial Committee - exempt.

The RFL hand out information leaflets.  Presumably the FA do the same.

How far up the food chain are we talking ?  Premier League or Lower Hockleton Wednesday League ?

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By Brian Ogilvie
06th Mar 2015 14:47

Cricket

I have dealt with 4 County cricket testimonials and endorse the comments above other than I think that profit on sales of places at a lunch or dinner would be exempt as would raffle prizes and other items listed Always assuming non contractual of course

Note that the general tax free status end in 2016 !

https://www.accountingweb.co.uk/article/hmrc-withdraw-testimonials-conce...

 

 

 

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Replying to Duggimon:
RLI
By lionofludesch
06th Mar 2015 13:46

Trading

Brian Ogilvie wrote:

I have dealt with 4 County cricket testimonials and endorse the comments above other than I think that profit on sales of places at a lunch or dinner would be exempt as would raffle prizes and other items listed.

Brian - on what grounds would you consider trading profits to be exempt ?

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Replying to legerman:
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By lionofludesch
06th Mar 2015 15:07

Very good

fawltybasil2575 wrote:

Pending Brian's considered response, may I suggest Edgbaston, Headingley and Lords ; and certainly Sabina Park :)

Like it, basil.

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Replying to Duggimon:
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By lionofludesch
06th Mar 2015 15:12

Representations

Brian Ogilvie wrote:

Note that the general tax free status end in 2016 !

https://www.accountingweb.co.uk/article/hmrc-withdraw-testimonials-conce...

Apparently, pan-sport representations are being made.  No outcome as yet.

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By LyneT
06th Mar 2015 12:34


Cricket again, and not footballers, but see  Moorhouse v Dooland (1954) and Reed v Seymour (1927)

Both involve benefit matches.  Not being a football or cricket fan, would assume benefit matches are the same as testimonials?

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By Brian Ogilvie
06th Mar 2015 14:55

In the cases I have dealt with the profit on sales of places has been more than exceeded by other expenses (MC,PA system,hotel costs for special guests etc)  which I have viewed as allowable corporation tax deductions.The money is made on the auctions and raffle prizes !

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Replying to lionofludesch:
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By lionofludesch
06th Mar 2015 15:11

Ah!

Brian Ogilvie wrote:

In the cases I have dealt with the profit on sales of places has been more than exceeded by other expenses (MC,PA system,hotel costs for special guests etc)  which I have viewed as allowable corporation tax deductions.The money is made on the auctions and raffle prizes !

That's a very different issue.  By claiming these costs as a deduction, you imply that the income is not exempt.

These cricketers are very poor businessmen, aren't they ?

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Replying to claudialowe:
By Brian Ogilvie
06th Mar 2015 15:31

Sorry,slightly misleading there.It is also possibly a moot point as to whether some of those 'other' costs could be ascribed to the auctions and raffles.That might change the overall result

ALL sportsmen are hopeless at their finances,would not have it any other way !

Will the Government listen to those representations ? Very unlikely IMO.....Ryan Giggs enjoying £1m tax free from his THIRD testimonial match was enough for the powers that be

 

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RLI
By lionofludesch
06th Mar 2015 15:46

Journeymen

Most players don't get that. It's easy to look at the stars and extrapolate to sport in general.

Some players don't even earn enough to make a decent living from the sport.

Typical testimonial for a Div 2 RL player ?  Four figure sum.  After tax on the taxable bit.

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By John MacDonald
06th Mar 2015 15:47

Testimonials, benefits and tax

I always thought that footballers's testimonials were taxed but cricketers's benefits were tax-free.

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Replying to DJKL:
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By lionofludesch
06th Mar 2015 15:52

Lesson learned

John MacDonald wrote:

I always thought that footballers's testimonials were taxed but cricketers's benefits were tax-free.

Football took lessons from cricket back in 1954.

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Replying to Carolynne:
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By John MacDonald
06th Mar 2015 16:08

Football and cricket

I can remember Ian Gillard of QPR and England saying he only made £500 from his testimonial and he had to pay tax on it, while at a similar time "Flat Jack" Simmons of Lancashire got £100k tax-free.

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RLI
By lionofludesch
06th Mar 2015 16:11

Mixture

I don't go back that far but, as far back as I go, there's always been a mixture.  I'd be surprised if Jack Simmons' benefit tie-selling activities were tax free.  If that's not trading, I don't know what is.

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RLI
By lionofludesch
20th Mar 2015 10:25

Budget

Did anyone spot anything in the Budget about withdrawing the exemption ?

Or will HMRC just say "we've changed our minds - take it to the FTT if you disagree."

Which is what they said in similar cases in the past.

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By spidersong
20th Mar 2015 11:18

spot the ball...

I spotted the bit that said they're preserving current treatment and won't make changes before April 2016.

"2.69 Sporting testimonials – Following a recent call for evidence on Extra Statutory
Concessions, the government will preserve the current tax treatment of payments made from
sporting testimonials while it considers representations. No changes will be made before April
2016."

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RLI
By lionofludesch
20th Mar 2015 11:31

Thanks

Safe for another year then.

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By Brian Ogilvie
20th Mar 2015 14:54

Budget

Not as good as it appears I would say - they were not intending to change things 'before April 2016" anyway !

Door remains open for legislation in FA 2016 to take effect from 6 April 2016 once the Govt has considered representations (for which read "carries on regardless')

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RLI
By lionofludesch
20th Mar 2015 15:17

Not required

I'm not sure legislation is required.

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