Professional Game Match Officials Ltd (PGMOL) v HMRC Supreme Court Judgement

The long-awaited Supreme Court judgement in the case of PGMOL v HMRC was published on 16th September.  Those holding their breath for the final whistle in this 10 year appeal process will be disappointed to learn that, although the Supreme Court dismissed PGMOL’s appeal, the case has been referred back to the First Tier Tax Tribunal for a decision on whether, in the light of other recent case law, the individual contracts were contracts of employment. 

The court held that;

• A referee and PGMOL were under mutual contractual obligation from the time that the referee confirmed that he would officiate at a match until he completed his duties by filing a match report.  The fact that either party could cancel the arrangement was immaterial.  Mutuality of obligation applied. 
• The obligations placed on the referee via contractual requirements were sufficient to demonstrate a framework of control without needing to demonstrate the right to give direct instructions to the individual on a regular basis
• The question of whether the referees were engaged under contracts of employment needs to be remitted to a First Tier Tribunal who will need to consider the guidance provided by HMRC v Atholl House Productions Ltd and the Supreme Court in this case. 

Aspire Comment

The saga regarding this tax liability of £583,874 continues to run and neither side can be happy to incur a further round of legal fees in conducting yet another hearing.  However, it is a clear demonstration of the complexity of our employment law and the cost of clarifying status.   

See our previous news summary here