Sporting Testimonials
As part of the 2015 Autumn Statement, the Government announced that it would be reforming the income tax and NICs treatment of payments derived from sporting testimonials. The changes for income tax were legislated for in the Finance Act 2016, and came into effect on 5 April 2017.
	The changes to the NICs treatment of sporting testimonials places a Class 1A NICs liability (which mirrors the income tax liability) on the amount of a testimonial payment that exceeds £100,000. The new Class 1A liability does not affect individuals as it is to be paid by the controller of the sporting testimonial.
	The changes will bring payments from sporting testimonials that are non-contractual, non-customary and organised by an independent testimonial committee within the scope of both income tax and NICs. The new £100,000 exemption applies to only one testimonial in a person’s lifetime, which could come from one event or a series of events held over a 12 calendar month testimonial year.