HMRC is keeping a close eye on sporting testimonials to ensure that retiring footballers, cricketers and rugby players are complying with the labyrinthine tax rules. Andy Turner, partner at Mercer & Hole, examines potential pitfalls
In recent times, particularly in football, the mouth-watering salaries paid to Premier League players and the lack of longevity of service has meant that the ‘testimonial’ has become rarer. Simply, the length of service has not warranted the club to provide the player with a testimonial and the funds are not necessarily needed by the player. But there are still plenty of these games every year. Essentially a testimonial match or game is an event where a sportsperson is recognised by their club for long service in what can normally be a short career.
Vincent Kompany, the ex-Manchester City player recently held a testimonial match, following the likes of other premiership footballers, Manchester United’s Wayne Rooney and Chelsea’s John Terry, who have all raised significant amounts of money through their testimonials and donated this to their chosen charities.
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