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Junior football and the national minimum wage!


stewsy14

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Interested to know everyone's thoughts on their club paying the national minimum wage. Probably not an issue at the higher echelons of our game, but could definitely be one for the lower league clubs.

Players on professional contracts being paid £10 or £20 a week and being asked to train for 2 hours twice a week and be at games for 3 or 4 hours on a Saturday, call it 8 hours in total and for an over 25 year old, clubs could b looking at £60 a week to stay within minimum wage guidelines.

Or clubs go for an all amateur structure and pay nothing and then lose the residual value of their players in terms of transfer fees!

Thought?

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If this was to be enforced the only option would be for clubs to sign players on an amateur contract. Very few clubs could afford to keep 18 players on £60 a week, a wage bill of £4320 a month. It would put all but the bigger clubs out the game

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A few seasons ago it was muted that clubs should be paying players a minimum of 9 hours per week at NMW.

This was all around HMRC trying to get a grip on players making untaxed monies from Jnr football

They wanted to force some of the larger clubs into doing paye

How that ended I don't know

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Players don't need to be amateurs when not getting a wage.  A player of professional status can be signed on a professional non-contract basis which means he retains his professional status, is a signed player until the end of the registration period but should only receive expenses incurred.

 

A junior player is signed either as a professional contract, a professional non-contract or an amateur.

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https://www.gov.uk/working-for-yourself/what-counts-as-self-employed UK Gov. HMRC web-site. You can be both employed and self-employed at the same time, e.g.  if you work for an employer during the day and run your own business in the evenings.

Players should contract as a self-employed person with the club.

Are there any HMRC rules preventing this ?

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Why the question now?

The NMW of £6.70 would still have been £50+ a week based in your 8 hours a week, and has been around for quite a while (all be it previously it was £6.50 and lower etc)

So a £50 a week bill per player on a squad is around £40k annually. I doubt many clubs outside super leagues have that sort of wage bill. So how do they do it just now.

Maybe I am just cynical but is their a personal interest in your post?

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Would those signed on a non contract basis be viewed the same as someone on a zero hours contract? Not guaranteed an income but due minimum wage for hours worked?

 

I would say not.  They are 'working' with the agreement that they are not seeking wages, just like the wee woman in the charity shop, which isn't working as such.

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The National Living Wage came into effect on the 1st April and all employers must pay employees aged 25 or over £7.20 per hour. Should the government apply this to Junior football clubs then most clubs would be forced to sign players as amateurs Many clubs are subject to p.a.y.e. And players pay tax therefore the result of government action would result in a loss of revenue to the tax man.

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The National Living Wage came into effect on the 1st April and all employers must pay employees aged 25 or over £7.20 per hour. Should the government apply this to Junior football clubs then most clubs would be forced to sign players as amateurs Many clubs are subject to p.a.y.e. And players pay tax therefore the result of government action would result in a loss of revenue to the tax man.

 

Voluntary workers are exempt from the legislation.  So as I said earlier, a player of professional status could be signed on a professional non-contract basis which means they agree to 'work' for no wages just like voluntary workers all over the country.  A professional player wouldn't need to revert to amateur status to sign for a junior club.

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The National Living Wage came into effect on the 1st April and all employers must pay employees aged 25 or over £7.20 per hour. Should the government apply this to Junior football clubs then most clubs would be forced to sign players as amateurs Many clubs are subject to p.a.y.e. And players pay tax therefore the result of government action would result in a loss of revenue to the tax man.

I get all that, however I don't get why the extra £4 per week has now made this thread. The NMW existing before the living wage ( which as you point out is for 25 and over of which there is plenty in junior football that are under 25.)

So the 'problem' has existed for a long time and hasn't been an issue so why the question now from the OP?

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The original poster supports Forth so perhaps worried his club going to have to comply to Living Wage and end up out of business as only Super League teams would likely be paying Living Wage. But as discussed on this thread clubs can sign players as amateurs or on professional non contract basis to avoid requiring to pay Living Wage l. The players being paid less than living wage are happy enough to play for £0 to £40 a week or they wouldn't be turning up for training and on Saturdays.

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Question came about following a discussion at a game the other week, concern was raised about the possible impact on lower division clubs in terms of national living wage and what would happen if any player raised the issue with the low pay unit! Nothing more than that.

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https://www.gov.uk/working-for-yourself/what-counts-as-self-employed UK Gov. HMRC web-site. You can be both employed and self-employed at the same time, e.g. if you work for an employer during the day and run your own business in the evenings.

Players should contract as a self-employed person with the club.

Are there any HMRC rules preventing this ?

Aye and they're pretty obvious. You need to sign a contract with a club. That stops you playing for other clubs. There are zero ways of spinning that as not being an employee.

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