Background
Income tax is payable on all forms of earned income which exceeds the tax free allowances which are set by the Government each year and is usually deducted at source by employers.
Referees, Assessors, Instructors, Mentors and others receiving an income from Refereeing related activities are classified as self employed. They are responsible for maintaining their own tax affairs and for declaring their income to Her Majesty’s Revenue & Customs (HMRC). Tax is not deducted at source and the payment of any tax liabilities arising from the fees received for undertaking their duties is the responsibility of the individual.
Tax payers are required to submit a tax return (either paper based or on-line) to HMRC by certain deadlines and HMRC have the authority to apply fines to those who fail to comply with submission deadlines, who submit inaccurate or incomplete information. HMRC do not issue a tax return to everyone but it is the responsibility of each individual to inform HMRC of their status and to submit a tax return if tax is due.
Income from Refereeing related activities must be reported when claiming state benefits. Failure to do so may affect future benefits and may lead to a fraud investigation.
The necessity to maintain records
To be able to calculate whether tax is due or not, everyone receiving an Income from refereeing related activities should maintain a record of income and expenditure:
Income includes:
1. fees
2. expenses
3. subsistence allowance (where paid)
4. ex gratia payments
Expenditure includes:
1. Affiliation and subscription fees to ABS & County FA
2. Match day and training kit
3. Laundry expenses
4. Training publications and other expenses
5. Accountancy fees (if appropriate)
6. Insurance
7. Mileage expenses at approved mileage rates including travel for:
· Refereeing
· Training, including fitness tests
· Personal hearings
· Society meetings
· County FA training seminars
8. Telephone, postage and stationery costs
9. Computer expenses and capital allowances for on line filing of reports
10. Anything else that is considered appropriate and necessary in the course of the activity in which the individual is involved
HMRC approved allowances for the use of your own private transport are currently as follows:-
Cars and vans 40 pence per mile upto 10,000 business miles per tax year
25 pence per mile over 10,000 business miles per tax year
Motorcycles 24 pence per mile
Bicycles 20 pence per mile
If a football league or County FA pays you 25 pence per mile travelling expenses, you can claim 40 pence per mile on your expenditure record for the use of a private car against your refereeing income.
This concession only applies to a personally owned vehicle; if you drive an expensed company car or van, the full amount is not claimable and would have to be calculated based on what you actually have to contribute yourself to the car’s running costs.
Examples of Details required:
Income
Match Fees 20@ £20 400.00
20 @£25 500.00
2 @ £60 120.00 1020.00
Travelling Expenses 800 miles @25p 200.00
50 miles @ 30p 15.00 215.00 1235.00
Expenditure
Affiliation Fee County FA 15.00
ABS inc Insurance 25.00 40.00
Match day kit Long Sleeve Shirt 28.00
Short Sleeve Shirt 22.00
2 pairs shorts 30.00
2 pairs socks 10.00
1 pair boots 75.00
4 pairs laces 10.00
Flags & sticks 15.00
2 Whistles 10.00
Match record pads 2.50 202.50
Training Kit Track suit 50.00
Training shoes 25.00 75.00
Loaf 4.00
Laundry 42 matches @ £2.50 105.00
Mileage
42 Matches/Comps 1200 miles @40p 480.00
2 Personal hearings 50 miles @40p 20.00
8 Society Meetings 80 miles @40p 32.00
2 CFA Seminars 100 miles@40p 40.00
30 Training Sessions 300 miles @40p 120.00 692.00
Telephone 40 weeks @50p 20.00
Postage & stationary 42 Matches @£1 42.00
Computer Expenses 100.00 1280.00
Profit/(Loss) on Referee Activities (-45.50)
Conclusion
Referees, Assessors, Instructors, Mentors and others receiving an income from Refereeing related activities should maintain a record of income and expenditure to identify whether taxation is due or not and should submit a tax return annually to avoid the possibility of a tax investigation by HMRC.
Individuals who submit a tax return should include income from Refereeing related activities on it, even if they record that their expenditure exceeds income.
Individuals who do not submit a tax return must decide whether their income exceeds expenditure and therefore whether there is any tax due. If tax is due it is their responsibility to submit a tax return and pay the appropriate amount of tax to HMRC.
Most referees operating at lower levels of the game are unlikely to receive sufficient income from refereeing to cover their allowed expenditure and record a self-employed trading profit that could potentially give rise to a tax payment.
Those operating at higher levels are more likely to find themselves in a situation where tax would be due.
