The measure confirms that all income from sporting testimonials and benefit matches for an employed sportsperson 
will be chargeable to tax, and NICs. This treatment will be subject to a ‘one-off’ exemption of £100,000 of the income received from events held during a single testimonial or testimonial year. Where there is a contractual entitlement or customary right to the sporting testimonial or benefit match then this exemption will not apply.
Independent testimonial committees will now need to operate PAYE where the total proceeds from a non-contractual sporting testimonial or benefit match (or a number of events comprising a testimonial year) for an employed sportsperson exceed £100,000.
The new one-off exemption of £100,000 will ensure that employed sportspersons on modest incomes who, for whatever reason, may be coming to or have already reached the end of their playing career are protected from these changes.
The measure will have effect for the income received from non-contractual / non-customary sporting testimonial events held on or after 6 April 2017 where the testimonial has been awarded on or after 25 November 2015. Income from sporting testimonial events held on or after 6 April 2017 where the testimonial or benefit match was awarded before 25 November 2015 will be subject to existing arrangements.
You can read more about this change on the .Gov website.
Our team have considerable experience of working with individual sportspeople and sports governing bodies and can assist with any tax related matters. Give us a call today to see how we could work together.
