Sporting Testimonials Section 3: Sporting testimonials: Great Britain
This section provides for any Class 1A NICs liability arising on taxable sporting testimonial payments by virtue of section 226E of ITEPA 2003 and section 10 of the SSCBA 1992 to be met by third party controllers of sporting testimonials.
	The controller will be liable to pay Class 1A NICs due on sporting testimonial payments that comprise cash as well as benefits in kind.
	Subsection (1) provides for amendments to the SSCBA 1992.
	Subsection (2) inserts into section 10 of the SSCBA 1992 a reference to new section 10ZBA which will provide for the new Class 1A NICs liability on sporting testimonial payments to be placed on the controller of a sporting testimonial.
	Subsection (3) inserts into section 10ZA of the SSCBA 1992 new subsection (1A). This new subsection makes clear that section 10ZA will not apply if the benefit being provided by the third party consists of a sporting testimonial payment.
	Subsection (4) inserts into the SSCBA 1992 new section 10ZBA.
	New section 10ZBA(1) defines the circumstances in which a sporting testimonial controller will be liable to pay Class 1A contributions. Three conditions must be satisfied:
	a Class 1A NICs liability must be payable for the tax year in respect of general earnings paid to an earner;
	those general earnings must consist in a sporting testimonial payment; and
	the controller of the sporting testimonial making the payment must not be the person who, but for new section 10ZBA, would be liable to pay Class 1A NICs on those general earnings.
	New subsection 10ZBA(2) provides that the controller of the sporting testimonial is liable to pay the Class 1A NICs due in respect of the sporting testimonial payment instead of the earner’s employer.
	New subsections 10ZBA(3), (4) and (5) deal with cases where the controller of the sporting testimonial pays an amount to discharge any liability of the earner to pay income tax in the relevant tax year in respect of a sporting testimonial payment. Normally, a payment of an earner’s income tax by someone other than the earner himself constitutes a payment of earnings for NICs purposes on which a Class 1 NICs liability arises. New subsection (4) provides that where such an amount is paid by the controller of the sporting testimonial, that amount is to be treated as a payment of general earnings and is to be ignored in the computation of the earner’s earnings for Class 1 NICs purposes. The combined effect of sub sections (3), (4) and (5) is to require the controller of a sporting testimonial to pay Class 1A NICs on any payment made by him to discharge the earner’s tax liability on the sporting testimonial payment.
	New subsection 10ZBA(6) provides that the expressions used in this section have the same meaning as in section 226E of ITEPA 2003.