HMRC loses employment status case involving football referees

HMRC has lost another employment status case, this time involving football referees engaged by Professional Game Match Officials Ltd (PGMOL). The tribunal rejected HMRC’s argument that the referees should be treated as employees for tax purposes. Why does the decision matter?

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The case concerned referees operating in the National Group who officiated matches in the English Football League. HMRC argued that the referees were employees and that PAYE and National Insurance should therefore have been operated on their match fees. The tribunal disagreed. It concluded that the level of control exercised over the referees was insufficient to create an employment relationship and that there was no overarching obligation requiring referees to accept work or PGMOL to provide it. These factors pointed away from employment status.

The decision is another reminder of the difficulty HMRC continues to face in employment status disputes, particularly where individuals work on a flexible or assignment-by-assignment basis. While HMRC has had success in some recent IR35 and status cases, tribunals continue to place significant weight on the overall contractual relationship rather than operational oversight alone.

For businesses engaging contractors or freelance workers, the case underlines the importance of reviewing working arrangements carefully rather than relying solely on labels in contracts. Control, mutuality of obligation and the practical reality of the relationship remain central to determining employment status for tax purposes.

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