Extra time for PGMOL & lessons to be learnt from down under

The Supreme Court's verdict on the much-anticipated IR35 judgement involving PGMOL and its referees had everyone hoping it would clarify the murky waters of the employment status rules, particularly for those in the world of ad hoc contracts and live performances.

The Supreme Court did manage to make a decision on two crucial issues:?

• They acknowledged that from the moment the referees took on a match until they filed their match report, there was a clear mutual obligation.
• They also recognised that the referees were under contractual obligations regarding their conduct and performance, even though PGMOL intervene during the match.

However, disappointingly, the Supreme Court passed the ball back to the First-Tier Tax Tribunal to remake the overall IR35 decision, meaning the search for a clear, precedent setting case goes on.

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Across the Seas: New Zealand's "Gateway Test"

While the UK grapples with ongoing IR35 uncertainty, New Zealand has announced a step in the right direction: the "gateway test." This approach aims to cut through the complexity of employment status, providing a clear path for workers and businesses alike.

The "gateway test" lays out four decisive factors that, if all of them are met, the worker will be considered as an independent contractor. If not, the full employment status test is considered. The four tests are:?

• A written contract that spells out the worker's status as an independent contractor.
• Freedom for the worker to play for multiple teams, without restrictions from the business, even if it means working with the competition.
• No strict schedule set by the business, nor a minimum number of hours—alternatively, the worker can pass the ball and subcontract the work.
• Assurance that turning down extra work won't lead to a red card—termination of the contract.

With the UK's IR35 rules still causing head-scratching, perhaps it's time for HMRC and HM Treasury to take a page from New Zealand's playbook and consider a more straightforward statutory test. We can only hope!

#IR35 #OffPayrollWorking #EmploymentTax #Tax #HMRC #EY

Sue Robinson Ricky Jenks Vaneeta Khurana Robert Burton Jade Alessandra Lee