In HMRC v Professional Game Match Officials Ltd (Appellant) [2024] UKSC 29, the Supreme Court has nearly settled the long-running battle over the PAYE status of part-time football referees. The final decision now rests with the First Tier Tribunal (FTT) to determine whether or not a contract of employment exists.
The football officials and referees all registered to provide their services with Professional Game Match Officials (PGMOL), abided by the PGMOL rules and signed up for matches on an ad-hoc basis.
Once they agreed to work at a match, either party could back-out for injury or if double booked, for example.
These part-time referees are paid match fees and expenses and are eligible for bonuses based on performance.
HMRC assessed PGMOL for PAYE and National Insurance Contributions (NICs) on the basis that the match officials were employees and working under an overarching contract of employment. Having reviewed their Employment Status, HMRC raised Regulation 80 determinations for PAYE and Section 8 decisions for Class 1 National Insurance Contributions (NICs) on PGMOL
PGMOL had argued that the agreements under which match officials were engaged were stand alone agreements and not an employment contract because they lacked the key hallmarks of employment, as set out in extensive case law.
Their appeal has had many twists and turns.
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The First Tier Tribunal (FTT) found in favour of PGMOL, holding that the contracts were not contracts of employment because:
- There was insufficient mutuality of obligations between PGMOL and the referees.
- PGMOL had insufficient control over the referees under the contracts.
HMRC appealed. The Upper Tribunal (UT) held that the FTT had misapplied the law on control but It dismissed HMRC's appeal, on the basis that there was insufficient mutuality of obligation.
HMRC went to the Court of Appeal (CoA) which allowed HMRC’s case on the basis of mutuality of obligation and remitted the case to the FTT to re-consider that issue and control, based on its original findings of fact.
PGMOL then appealed to the Supreme Court on both the issues of Mutuality of obligation and Control under the individual contracts.
The Supreme Court has now held that the minimum requirements of mutuality of obligation and control necessary for a contract of employment between the National Group referees and PGMOL were satisfied in relation to the individual contracts, match by match.
Importantly, in respect of the mutuality of obligation question, it overturned the CoA's decision and held that this could apply to each separate match contract and it was not necessary to consider this in respect of the wider contract between the parties.
In light of its conclusion that these minimum requirements were met, the Supreme Court remits the case to the FTT for it to decide whether, in the light of all relevant circumstances, the individual contracts were contracts of employment.
Comment
This case quite possibly completes the set in what is now such a vast body of case law on this topic!
Useful guides on this topic
PAYE Regulation 80 & NICs determinations (subscribers)
When can HMRC assess an employer or an employee for unpaid PAYE and NICs? Who is assessed and what are the conditions?
Employment status (subscribers)
Why is it important to check my employment status? What tests should I use? What is the recent caselaw?
Employment status: Mutuality of Obligation
What is mutuality of obligation? Mutuality of obligations has two components.
Employment status & detailed checklist
Why is it important to check my employment status? What tests should I use? What is the recent case law?
Check Employment Status for Tax (CEST)
HMRC's online employment status tool, CEST 'Check Employment Status for Tax', is for workers, agencies and engagers in order to determine whether a worker is employed or self-employed for tax purposes.
FTT decision: Professional Game Match Officials Limited v HMRC [2018] TC06698
UT decision: HMRC v Professional Game Match Officials Limited [2020] UKUT 0147
CoA decision: HMRC v Professional Game Match Officials [2021] EWCA Civ1370
External link
HMRC v Professional Game Match Officials Ltd (Appellant) [2024] UKSC 29
