Fallout from a long-running legal battle over employment status between football referees and HM Revenue & Customs (HMRC) could have significant repercussions for businesses across the country.
The final outcome in the long-running Professional Game Match Officials Limited (PGMOL) litigation may prove to be one of the most significant employment status decisions of recent years, says UK top 10 accountancy firm Azets.
Football referees were ultimately found not to be employees for tax purposes, with HMRC throwing in the towel by deciding not to appeal against a First-tier Tribunal ruling in May 2026, confirming that the judgment will stand.
HMRC ultimately lost the case despite successfully establishing both mutuality of obligation and a framework of control in a 10-year legal battle which went through both the Appeal and Supreme courts.
Jez Howson, Azets’ Head of Employment Tax South, said: “This was a highly complex case which not only reveals that our understanding of employment status indicators can be nuanced and, more importantly, is a reminder that employment status remains an exercise in judgement rather than a checklist exercise.”
PGMOL is responsible for supplying match officials for professional football in England, including Premier League and English Football League fixtures. The dispute concerned a group of part-time referees engaged on a match-by-match basis during the 2014/15 and 2015/16 tax years.
HMRC argued that the referees should be treated as employees for tax purposes, with PAYE and National Insurance contributions arising on match fees. The case was considered through multiple levels of the judicial system before reaching the Supreme Court in 2024.
The Supreme Court found that two key components of the employment status test existed within the match appointments - mutuality of obligation and a sufficient framework of control.
However, the Court deliberately stopped short of deciding whether the referees were employees. Instead, it returned the case to the First-tier Tribunal to undertake a full multi-factorial assessment.
In May 2026, the First-tier Tribunal concluded that the referees were not employees for tax purposes, and HMRC subsequently confirmed that it would not appeal the decision, bringing more than ten years of litigation to an end.
Azets, which has Kent offices in Maidstone, Ashford, Canterbury, Sandwich and Sidcup has been following the case closely.
Jez added: “HMRC succeeded in persuading the Supreme Court that both mutuality of obligation and a framework of control existed within the referees' engagements. However, despite establishing those factors existed, HMRC failed to demonstrate that the overall relationship was one of employment and reinforces an important principle which is identifying a status indicator is not the same as proving employment.
“For HMRC officers conducting status reviews, particularly in highly regulated sectors, PGMOL may encourage greater consideration of the source of control, whether controls arise from regulation, governance or managerial direction, the nature and duration of mutual obligations, and the wider commercial reality of the relationship.”
Jez, based in the Southampton office of Azets, the UK’s specialist business advisor to SMEs, medium and large corporates, charities and public sector organisations regarding employment tax, said businesses would need to take heed of the case.
“For businesses engaging consultants, contractors and other independent professionals, PGMOL provides an important reminder that employment status reviews should focus on the substance of the working relationship rather than individual contractual provisions or isolated indicators.
“Where organisations operate structured onboarding processes, quality frameworks, performance monitoring arrangements or compliance procedures, care should be taken before assuming those features automatically point towards employment. Businesses should consider whether those requirements arise from governance, regulation or genuine managerial direction.
“The decision also demonstrates the importance of documenting the commercial reality of a relationship. Factors such as project-based engagements, freedom to accept work, the absence of continuing obligations, and the degree of professional independence exercised by the individual may remain highly relevant when determining status.
“For organisations navigating IR35, off-payroll working rules and wider employment status compliance, PGMOL reinforces the need for a balanced assessment that considers all relevant factors rather than relying on predetermined assumptions.
“Ultimately, the most important lesson from PGMOL is that employment status remains a holistic exercise. The decision does not diminish the importance of mutuality of obligation or control. Rather, it reminds us that both concepts require qualitative analysis.
“For businesses engaging consultants, specialists and other highly skilled professionals, the decision is reassuring. It confirms that employment status continues to depend on the overall relationship between the parties rather than the mechanical application of individual indicators. That, perhaps, is the true legacy of PGMOL.”
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