Why did the Supreme Court dismiss PGMOL’s appeal?
The Supreme Court has rejected an appeal from the football refereeing body, Professional Game Match Officials Limited (PGMOL), about the employment status of 60 referees and a £584,000 tax bill.
The case involves determining whether football referees in the National Group, engaged as sole traders, are employees for tax purposes, which would require PGMOL to deduct employment taxes including National Insurance contributions.
The case clarified key legal principles concerning employment status, and resolved confusion around the application of the Ready Mixed Concrete (RMC) test, a leading case on employment status.
Key points from the ruling include:
Mutuality of Obligation and Control: Payment for services and some controls are basic requirements, but do not by themselves determine employment.
Control: A client does not need control over every aspect of the worker’s duties for a relationship to be deemed employment; sufficient contractual control is enough.
The full nature of obligations and the degree of control must be considered at a later stage of analysis.
The decision also ratified principles from the Atholl House case (involving IR35), and reinforced the need for firms to thoroughly assess employment status.
Chris Bloor, Director of Compliance at Caroola Group said: “The Supreme Court’s decision was long awaited and has hopefully clarified some longstanding confusion on these specific areas of relevant status case law.”
“The ruling is important for clients that utilise contractors, as it highlights that relying solely on mutuality of obligation and control to prove self-employment is a risky game and other factors, specifically determining whether the contractor can support a view of being in business of their own account, need to be fully considered as part of the decision making process.”
“Overall, this decision underscores the evolving nature of employment classifications in today’s dynamic work environment. It highlights the need for businesses to carefully examine their contractual relationships with individuals they engage, particularly in sectors where independent contractors and freelancers are common.”
PGMOL manages referees in the highest levels of English football, including the Premier League, English Football League, Women’s Super League and Women’s Championship.
