This is the time of year that most clubs start to plan their summer programme of coaching and club activities and it is therefore a perfect time to ensure that any self-employed coaches you use in delivering your programme are truly self-employed, i.e. they would pass scrutiny by HMRC (tax authorities) should they decide to investigate your club.
It is important to understand that a club cannot just declare that they are in a self-employment relationship with a coach. A club would have to prove to the tax authorities that the manner in which they work with the coach is genuinely a self-employment relationship, and not one of disguised employment, i.e. the manner in which the club works with the coach is actually one of employment/worker.
If HMRC find that the manner in which a club is working with a self-employed coach is actually one of disguised employment, they will declare the relationship to be one of employment/worker and pursue the club for owed employers national insurance contributions, interest and penalties, dating from when the coach started at the club.
There are three ways that a club can work with a self-employed coach to ensure they would pass inspection by HMRC. Each will require a contract of services to be in place between the club and the coach outlining the actual working arrangements.Read More›