NIM13310 - Class 1A NICs: liability for Class 1A NICs: Class 1A NICs on sporting testimonials: example 2 - over 拢100,000
Lysaer is a professional footballer who has worked tirelessly for charities in her local area and is seen as a pillar of the community. When she ends her career, she is offered a testimonial by her club who don鈥檛 normally do this and there was nothing in her contract about this.
Because the testimonial is a reward for her personal qualities rather than stellar performance at her 鈥渏ob鈥� this is not a reward for good performance and any payments will not be treated as a bonus from her employment.
皇冠体育app testimonial match and a series of events linked to it raise a total of 拢350,000 after all the expenses of the Testimonial Committee have been settled.
皇冠体育app first 拢100,000 of the proceeds are not subject to Class 1A NICs (or tax) due to the exemption.
皇冠体育app Class 1A NICs liability belongs to the Testimonial Committee and must be settled from their expenses.
皇冠体育app amount that Lysaer receives from the committee following the Class 1A NICs deduction is the amount on which income tax is due under section 226E of ITEPA.