NIM13304 - Class 1A NICs: liability for Class 1A NICs: Class 1A NICs on sporting testimonials: customary and non-customary sporting testimonials
National Insurance Contributions (Termination Awards and Sporting Testimonials) Act 2019
When there is no contractual arrangement in place giving the sportsperson entitlement to a testimonial but it is normal practice for a sportsperson to be awarded a testimonial in certain circumstances, then this is what constitutes as a 바카라 사이트榗ustomary바카라 사이트� testimonial. Any payments a sportsperson receives from a 바카라 사이트渃ustomary바카라 사이트� sporting testimonial payment held for their benefit will constitute 바카라 사이트渆arnings바카라 사이트� of that sportsperson under section 62 ITEPA 2003 and be subject to income tax and Class 1 NICs deductions.聽It does not matter whether the testimonial is organised by the employer or by a third party.
It therefore follows a non-customary testimonial will be one where there is not a testimonial award which is considered to be normal practice.聽The new rules introduced by the National Insurance Contributions (Termination Awards and Sporting Testimonials) Act 2019, apply only to income arising from sporting testimonials which constitutes earnings under section 226E ITEPA 2003, through which the聽 amount incurring that income tax liability, also incurs a Class 1A NICs liability under section 10ZBA SSCBA 1992.