In a dramatic reversal of a previously reassuring precedent, the UK Supreme Court ruled on 16 September 2024 that freelance football referees were not self-employed — but likely employees, for tax purposes.

This new ruling in HMRC v Professional Game Match Officials Ltd (PGMOL) overturns the earlier 2023 judgment that had supported self-employment for the referees based on their independence and lack of obligation to work.

The Court’s updated view significantly tightens the employment status test, with potential ramifications across construction, freelancing, and project-based contracting sectors.

What Changed?

At issue was whether referees hired on a match-by-match basis were employees under a “contract of service” or independent contractors under a “contract for services.”

Previously, the courts had ruled that:

• The referees had no obligation to accept matches
• The governing body was not required to offer them work
• Each game was a standalone engagement

This supported self-employment.

But in September 2024, the Supreme Court overturned that view, finding that:

• There was mutuality of obligation for each match (once accepted)
• PGMOL exercised a high degree of control over how the referees operated
• The referees did not have sufficient autonomy to be classed as independent

As a result, the Court concluded that each accepted engagement was an employment relationship — and remitted the case back to the tribunal for final classification under these stricter standards.

Why This Matters to Construction Clients

This ruling raises the risk level for companies relying on self-employed or freelance workers, including:

• Project-based tradespeople
• Regular subcontractors
• Freelancers engaged through agencies or direct contracts

If the working relationship involves:

• Regular control over tasks, location, hours, or behaviour
• An expectation that workers will accept work when offered
• A lack of business independence (no risk, no substitution, no other clients)

...then HMRC or a tribunal may now be more likely to classify that person as an employee, regardless of contract wording.

This affects both:

• Employment rights (holiday pay, unfair dismissal, sick pay)
• Tax treatment (PAYE obligations, employer NIC)

Practical Steps for Construction Businesses

Firms engaging CIS operatives or freelance specialists must now take a more detailed, evidence-based approach to employment status.

Key actions:

• Re-audit status assessments — especially for regular or site-based subcontractors
• Ensure that true self-employment involves freedom to decline work, lack of control, and genuine independence
• Avoid reliance on labels like “self-employed” or outdated precedents
• Document real-world practices, not just contractual terms
• Seek advice before renewing long-term freelance contracts that might now be borderline

The PGMOL case signals that HMRC will feel emboldened to challenge arrangements, even where there is no continuous contract — particularly if each engagement is highly controlled.

Clients of Ardent Tide benefit from a fully integrated compliance model, with status assessments, IR35 expertise, and CIS processes built to withstand the evolving legal test — so you’re protected.