An appeal on the tax status of 60 referees has been dismissed by the Supreme Court, with the case to be reheard at the First Tier Tribunal.
Today (September 16) the court said it had unanimously dismissed an appeal from the Professional Game Match Officials regarding the employment status of 60 referees it had engaged.
The court last heard the case in June 2023 which carries a tax liability of £584,000.
The case will now be heard again in the First Tier Tribunal, after first being heard in this court back in 2018.
It relates to a dispute between the body and HMRC over whether referees working between 2014 and 2016 should have been working as employees of PGMOL.
Seb Maley, CEO of employment status and IR35 expert, Qdos, commented: "This is a landmark case that puts the issue of employment status firmly on the radar of all businesses.
"The fact that it will be reheard at another First Tier Tribunal shows how complex employment status can be."
PGMOL initially contested the case successfully at the First Tier Tribunal.
Unsatisfied with this outcome, HMRC appealed at an Upper Tier Tribunal, which again found in favour of PGMOL.
As a result, the tax authority escalated the case to the Court of Appeal, which upheld HMRC’s appeal and resulted in the case being heard at the Supreme Court.
Maley added: "Along with highlighting the inefficiency of the tribunal process, this merry-go-round of a case is a stark reminder of the need for all businesses to carry out employment status determinations.”
Rebecca Seeley Harris, employment status and IR35 expert at Re Legal Consulting, said as an adviser it is hard to give businesses certainty with changes in case law.
She added: "Another victory for HMRC but another disappointment as the case gets remitted back to the FTT.
"After 15 months of waiting for the judgment, the merry-go-round continues and still no certainty. Ordinary businesses are supposed to interpret this case law in order to make a decision about whether someone should be employed or self-employed in a daily basis. How?"
While Dave Chaplin, CEO of tax compliance firm IR35 Shield, said the ruling shows a "full multi-factorial assessment" needs to be made, considering all relevant factors" needs to be done when a company is paying someone for work.
He added: “Regrettably for PGMOL, their case now faces a fifth hearing, having been remitted back to the First Tier Tribunal, to consider tax matters on engagements that took place 10 years ago.”
HMRC welcomed the decision by the Supreme Court.
A spokesperson said: "We welcome this decision, which confirms our position on employment status law and maintains clarity for taxpayers, employers and agents.”
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
