Payments made by a Premier League football club to two players upon the termination of their employment contracts were for the abrogation of those contracts with the club and were not ‘from’ the players’ respective employments.
The respondent (TH) was the parent of another company (THFAC), a Premier League football club (the companies being collectively referred to as T). In August 2011, T agreed on terms with two of its players (PC and WP), which involved the players leaving T to join another club, and T making payments to the players.
HM Revenue and Customs (HMRC) considered that the payments were earnings from the players’ employments and were subject to income tax (under ITEPA 2003, s 9) and National Insurance contributions (NICs) (under SSCBA 1992, s 6). HMRC issued PAYE determinations (under SI 2003/2682, reg 80) and NICs directions (under SSC(TF)A 1999, s 8). TH appealed.
