The Ref Stop

Match Fees

P

Purron4

New Member
My club had a meeting last week and ref match fees got mentioned. A ref who i know of has been investigated by HMRC for not declaring his £20-40 weekend hobby.
Ive spoken to my county FA RDO who says that he understands why its happened and he has advised that its down to the individual if they want to declare these 'earnings'.
I relayed this back to my club and a couple of refs are considering throwing in the towel (or whistle).

Thoughts and advise please?
 
The Ref Stop
Up to them.

Since match fees are ad hoc in nature ie. it's not guaranteed weekly income then any grass roots ref who wants to tell HMRC that it is, deserves all they get ..
 
There are some handy profit/loss spreadsheets out there which help calculate the tax to pay if you choose to declare it. I think there are some on here. It’s quite possible that you actually take a ‘loss’ while refereeing, due to expenses (kit, boots, whistles, equipment...).

I don’t think I know of any referees who declare it, other than 3s and full time officials.

Do you know what level that referee is? I know once it starts getting more serious with big match fees, that’s when it really probably should be declared
 
I declare my match fees. Have done since got to level 4. I then pay the tax through my salary so I don't even notice it.
Tax bill this year was £95. Year before think was £160.

You can earn up to gross £1000 without having to declare it at all. So if you are juts doing youth and junior and only bringing in 20-40 a week doing 1 game unlikely you need to declare it anyway.

No way HMRC are going after referees, the income gained will far outweigh the cost of investigations.

What i would say though is consider your profession. If you are a police officer or in a job where if you were to be investigated you could compromise your position then just declare it. Its so easy, just do cash in / out. I literally put in I took x and my expenses were Y and they say you owe us z. And I keep a spreadsheet so if they ever ask I can send them my records.
 
I’ve been told up here its expenses up here not earnings.
dont know anyone who declares it. Lower level 40 quids that is.
 
If declaring match fees you are allowed to set admissible expenses off against the income. Calculate these as costs you incur solely in relation to football - travel, kit purchases, laundry, RA membership, CFA registration costs, training, extra costs on telecoms, etc (but not meals!)
Most match officials will end up not owing anything, and HMRC are busy enough without bothering about a few pounds here and there.
 
This typically hits those who have to do self assessment more than anyone else, but as a minimum everyone should be keeping records of match fees, expenses received (if separate to match fees) and expenses incurred.

Certainly as a supply league observer my allowed expenses eat massively into the all inclusive £30 fee. When you consider the allowance is 45p per mile, if I travel a 40 mile round trip, which is probably below average, that's 60% of the match fee gone already. I've done games where I have travelled more than 67 miles, and in those cases effectively the taxman owes me rather than the other way around. Then there's use of home IT equipment to complete the observations, printing costs, attending meetings (stopped now obviously but no doubt will come back), cost of required CRC and safeguarding checks, registration as a referee (which is required even for observers who don't referee any more), and so on.

As a referee you can add in kit and laundry costs as offsets against income. Where is becomes a bit more challenging is if you are paid fees plus expenses as opposed to an all inclusive fee, as then you can only offset the difference between what you receive and what is the maximum allowed under tax law. For example, if the competition pays you 35p per mile you can only offset the additional 10p per mile.
 
I’ve always made a loss/evens being a referee once you take into consideration kit, fancy whistles and other things that you don’t need, but you think... “I really need these more expensive boots because they’ll make me run faster”...

I think that if it becomes part of your living income (couldn’t survive without / makes a difference to living standards), then you’re clearly making profit and should declare.
 
I am a landlord so I do a self assessment. Never mentioned refereeing fees and never will. Its not even a consideration for me. Refereeing is a hobby and there will not be any push by the HMRC to collect tax from amateur refs. Dont worry about it.
 
If you are doing at grassroots level, then you should be OK, as this is all casual and members subs pay you.

If you get involved in 5-a-side organised football, then you are more likely to be needed to keep proper records and declare your earnings. These comes need to keep records of their payments, so likely HMRC will see them.

Then your weekend becomes part of this income, so your kit costs etc are covered by more income.
 
I can speak on this with some relative authority as a former HMRC fraud officer. Whether you decide its a hobby and expenses or an income its down to you however HMRC deem it as an income. I know HMRC are looking at obtaining the information from respective authorities on referees fees within their leagues - regardless of the sport.
However look at the profit and loss situation. The allowance for travel costs are 45p per mile. If your League pays 35p then, in effect, you lose 10p per mile so keep a note.You would need to purchase a kit every year / 2 years, badges, socks, whistles, boots. laces, etc. Keep your invoices and a record of how much you recieve. Society fees count as costs as well.
Also beware if you’re unemployed and receiving benefits as it could or would count towards them.
Although its unlikely you’ll get caught its a risk you take. Don’t think that HMRC review a monetary amount - ie nothing under £250 - to open an enquiry. There’s an awful lot of new trainees and these would be easy cases training wise! Just be sensible - if you referee a considerable amount of matches including 5-a-sides then its possible these centres would declare their payment for their own tax purposes.
Another word of warning. Car insurance - make sure you have work use on your insurance. There have been cases where cars have been damaged and the referees cannot claim because they’re only insured for leisure!
 
Texan said:
Another word of warning. Car insurance - make sure you have work use on your insurance. There have been cases where cars have been damaged and the referees cannot claim because they’re only insured for leisure!
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I was fortunate enough to have work on my insurance as I accidently added it (first time I'd bought insurance for my car myself, as previously always been on partners insurance/multicar) thinking its because I used it to go to work.
Was in an accident driving between two games, car pulled out side street right into the side of me, he didn't (apparently) see me at all but then that was because, in my opinion, the road was packed with parked cars either side of the road and was busy on opposite direction so he squeezed between the gaps of the cars and failed to see me, but thats irrelevant.
I rang insurance up and initially I thought this was going to cost me a lot but was very happy to find out I was paying extra for work premium not realising I picked it on the website.
I do recommend this. The insurance company said if I hadn't then my insurance would have been null and void, and would lose my no claims too. Thankfully I didn't lose my no claims and it cost me nothing.
 
Proof of having insurance that covers you on random journeys between residence and a place of work/duty is a mandatory annual requirement for me. If I don't provide it - I'm unable to claim mileage allowance for any journeys I make in my own vehicle. Not that it's connected to refereeing in any way obviously. 🙂
If I had a prang going to or coming from a match, I'd assume it comes under "social, recreational and pleasure".
 
Referees in Wales were advised to ensure "work travel" was on their car policies as one referee was unable to claim when his car got damaged in the car park at a match. Its often the case it doesnt add much onto your policy but it does give peace of mind.
It also underpins the "work" aspect of refereeing for tax purposes!
 
Texan said:
I can speak on this with some relative authority as a former HMRC fraud officer. Whether you decide its a hobby and expenses or an income its down to you however HMRC deem it as an income. I know HMRC are looking at obtaining the information from respective authorities on referees fees within their leagues - regardless of the sport.
However look at the profit and loss situation. The allowance for travel costs are 45p per mile. If your League pays 35p then, in effect, you lose 10p per mile so keep a note.You would need to purchase a kit every year / 2 years, badges, socks, whistles, boots. laces, etc. Keep your invoices and a record of how much you recieve. Society fees count as costs as well.
Also beware if you’re unemployed and receiving benefits as it could or would count towards them.
Although its unlikely you’ll get caught its a risk you take. Don’t think that HMRC review a monetary amount - ie nothing under £250 - to open an enquiry. There’s an awful lot of new trainees and these would be easy cases training wise! Just be sensible - if you referee a considerable amount of matches including 5-a-sides then its possible these centres would declare their payment for their own tax purposes.
Another word of warning. Car insurance - make sure you have work use on your insurance. There have been cases where cars have been damaged and the referees cannot claim because they’re only insured for leisure!
Click to expand...

I take it all on board as you're obviously coming from a position of knowledge. But, and I understand there's young refs on here who might be better to follow other advice as opposed to my real world stuff, you are not going to pursued by HMRC grassroots refereeing. Its just fsr more cost and bad press than its worth.

If there was a push on this then the tax would have to be incorporated into referee fees, and with the financial situation of clubs and their players worse than ever before its just not going to happen. Like Texan said, upto you if you declare it, but you'll be in the huge minority.

The worst that could happen is that you're chased for an amount of matches which is impossible to prove and a long list of expenses to offset against said matches. And then the whistle goes in the bin because the earnings has gone down 25% and the hassle gone up. I dont want a 2nd job.

Of course it's each to their own.
 
Ben448844 said:
I take it all on board as you're obviously coming from a position of knowledge. But, and I understand there's young refs on here who might be better to follow other advice as opposed to my real world stuff, you are not going to pursued by HMRC grassroots refereeing. Its just fsr more cost and bad press than its worth.

If there was a push on this then the tax would have to be incorporated into referee fees, and with the financial situation of clubs and their players worse than ever before its just not going to happen. Like Texan said, upto you if you declare it, but you'll be in the huge minority.

The worst that could happen is that you're chased for an amount of matches which is impossible to prove and a long list of expenses to offset against said matches. And then the whistle goes in the bin because the earnings has gone down 25% and the hassle gone up. I dont want a 2nd job.

Of course it's each to their own.
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With most leagues using full time where you can see every game a referee has done on that league for years it would be very easy to prove games.

I would at the very least be keeping a record, so that if hmrc did ever ask, you can pay what you owe, rather than an estimate.
 
JamesL said:
With most leagues using full time where you can see every game a referee has done on that league for years it would be very easy to prove games.

I would at the very least be keeping a record, so that if hmrc did ever ask, you can pay what you owe, rather than an estimate.
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Thats exactly my point keep a record of everything even if it cost you to upgrade to work useage on your car insurance. Travel mileage is another (as I put in my earlier post) as are Registrations & Society fees. Dont ever think that because HMRC cannot prove how many games you've had they cannot do anything as they'll take what is deemed as an "average". Trust me. If a League or Association is asked for a list of referees it is obliged to provide a list or be fined - same as League Officials (honorariums).
Additionally I know factually that every couple of years it is reviewed because I've been formally asked about it. Keep an accurate record and you'll be surprised that its not that finacially beneficial at grass roots level (that was my input to the "review").
Just be smart about it!
 
Texan said:
Thats exactly my point keep a record of everything even if it cost you to upgrade to work useage on your car insurance. Travel mileage is another (as I put in my earlier post) as are Registrations & Society fees. Dont ever think that because HMRC cannot prove how many games you've had they cannot do anything as they'll take what is deemed as an "average". Trust me. If a League or Association is asked for a list of referees it is obliged to provide a list or be fined - same as League Officials (honorariums).
Additionally I know factually that every couple of years it is reviewed because I've been formally asked about it. Keep an accurate record and you'll be surprised that its not that finacially beneficial at grass roots level (that was my input to the "review").
Just be smart about it!
Click to expand...

The tax on 40 games for example (after expenses) would be peanuts. Not worth the effort on either side. It won't keep me up at night thats for sure!
 
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