Never underestimate HMRC...... If you are working thats 40x match fee - whats that £1,200 - at 25% tax - less "expenses". Backdated to when you started refereeing plus interest and possible fines
Its easy income. Just be careful!
Match Fees
- Thread starter Purron4
- Start date
Its easy income. Just be careful!
Be careful. what does that mean? Declare it? Its a binary choice. I'd be interested to know how many amateur refs declare earnings from refereeing? I don't know any thats for sure.
Not really something you discuss with other refs really. I have worked with probably 100+ different refs over the last 10 years and the conversation has only come up once and they declared because they were a police officer and being prosecuted for not paying taxes likely result in dismissal, so I couldn't begin to guess how many do and don't.
All he is doing is raising a valid point about being careful. That's not saying you must/should declare, what it means is, if hmrc do come knocking, just have a record so you can pay what you owe, not an estimate.
You are right, one singular ref is not worth the effort but, let's say 14000 refs are earning and should be declaring that then becomes a much different figure, with a fine for each on top....
I do wonder how much hobbies/recreational earnings that are not declared are worth to HMRC though outside of refereeing. Would only take one big project to start bringing in revenue from those streams.
I understand his points perfectly and he's talking from a position of greater knowledge than I. Its just not going to happen imo. But I get the sentiments.
My brother is a referee and I know a couple of others socially. Thats all though, but I dont thnk im wrong in assuming that the overwhelming majority dont declare refereeing fees.
A decision to tax referee earnings would be disastrous for the game. It just won't happen. Negative benefits
Referees have certainly been investigated in the past. I know of one who was essentially refereeing for a living, doing schools games pretty much every weekend then three or four games at the weekend. It really starts to add up then, and he thinks someone, probably a fellow referee, reported him to HMRC.
Wow. Nice move from a fellow ref...
If you're (practically) reffing for a living then thats a different argument. It's bo longer a hobby if you're earning estimated £200 a week like that chap. I'll be doing one game a week most weeks now I've moved, £30 a week. Thats a hobby imo. After transport costs etc the taxable amount is negligible. I know this isn't applicable but I'm currently working 6-5 on Saturdays during lockdown, but i will be doing until 12pm once sports can start up again. Those 5 hours overtime are worth alot more than a game of football. My rules and not HMRC's of course but the reasoning is valid when the taxable amounts are so small
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In the US, I heard of a referee association that fell into the spotlight of the IRS resulting in audits of many referees who were not declaring their match fees as income.
I know nothing about UK tax law; in the US there is no ambiguity at all: it is payment for a service and taxable (less associated expenses); more complex as to whether if your ref expenses exceed your fees you can count those expenses to set off other income. So while some referees in the US may not declare the income, it is clearly a violation of tax law not to. People cheat on their taxes in other ways, too.
I know nothing about UK tax law; in the US there is no ambiguity at all: it is payment for a service and taxable (less associated expenses); more complex as to whether if your ref expenses exceed your fees you can count those expenses to set off other income. So while some referees in the US may not declare the income, it is clearly a violation of tax law not to. People cheat on their taxes in other ways, too.