As we are approaching the deadline for self assessment Tax Returns this information may well be useful.
It is worth noting that refereeing at Level 5 and below is unlikely to cause a tax demand.
Background
Income tax is payable on all forms of earned income which exceeds the tax free allowances which are set by the Government each year and is usually deducted at source by employers.
Referees, Assessors, Instructors, Mentors and others receiving an income from Refereeing related activities are classified as self employed. They are responsible for maintaining their own tax affairs and for declaring their income to Her Majesty’s Revenue & Customs (HMRC). Tax is not deducted at source and the payment of any tax liabilities arising from the fees received for undertaking their duties is the responsibility of the individual.
Tax payers are required to submit a tax return (either paper based or on-line) to HMRC by certain deadlines and HMRC have the authority to apply fines to those who fail to comply with submission deadlines, who submit inaccurate or incomplete information. HMRC do not issue a tax return to everyone but it is the responsibility of each individual to inform HMRC of their status and to submit a tax return if tax is due.
Income from Refereeing related activities must be reported when claiming state benefits. Failure to do so may affect future benefits and may lead to a fraud investigation.
The necessity to maintain records
To be able to calculate whether tax is due or not, everyone receiving an Income from refereeing related activities should maintain a record of income and expenditure:
Income includes:
1. fees
2. expenses
3. subsistence allowance (where paid)
4. ex gratia payments
Expenditure includes:
1. Affiliation and subscription fees to ABS & County FA
2. Match day and training kit
3. Laundry expenses
4. Training publications and other expenses
5. Accountancy fees (if appropriate)
6. Insurance
7. Mileage expenses at approved mileage rates including travel for:
· Refereeing
· Training, including fitness tests
· Personal hearings
· Society meetings
· County FA training seminars
8. Telephone, postage and stationery costs
9. Computer expenses and capital allowances for on line filing of reports
10. Anything else that is considered appropriate and necessary in the course of the activity in which the individual is involved
HMRC approved allowances for the use of your own private transport are currently as follows:-
Cars and vans 40 pence per mile upto 10,000 business miles per tax year
25 pence per mile over 10,000 business miles per tax year
Motorcycles 24 pence per mile
Bicycles 20 pence per mile
If a football league or County FA pays you 25 pence per mile travelling expenses, you can claim 40 pence per mile on your expenditure record for the use of a private car against your refereeing income.
This concession only applies to a personally owned vehicle; if you drive an expensed company car or van, the full amount is not claimable and would have to be calculated based on what you actually have to contribute yourself to the car’s running costs....... (Shameless Copy & Pasting but hope it helps)