BIM50605 - Athletes: Trade/profession or hobby

That an athlete is described as an amateur is not decisive in considering whether he should be assessed under part 2 of ITTOIA. The leading figures in athletics are likely to be assessable on their earnings as persons carrying on a trade, profession or vocation.

But the activities of most athletes remain a purely leisure pursuit or hobby, even though payments may occasionally received, e.g. Athlete Personal Awards from the National Lottery Sports Fund (see BIM50650 onwards). The distinction between a hobby on the one hand and a trade, profession or vocation on the other is very much a question of fact and degree; amateur status is not decisive.

Practical approach

In one or two years an athlete's earnings may have exceeded the expenses. And, perhaps, the whole of the athlete's time may be devoted substantially to sporting and associated activities. But even the presence of both those pointers is not decisive. Inspectors will need more information before deciding whether the athlete is organising the activities in a business-like manner and with a view to making a profit. In order to consider the badges of trade (see BIM20050 onwards) Inspectors will need the full facts concerning:

• the nature and scale of the activities and the way they are organised,
• competitions and events entered in the relevant period, the athletes final position in each event and any prizes received,
• any grants or similar receipts from sporting or other organisations, and copies of documents setting out the terms under which they are received,
• any attendance or performance fees, and sponsorship or endorsement fees, with copies of the contracts and relevant documentation,
• any other income from associated activities including journalism, TV appearances etc.,
• the terms of any agreement with an agent negotiating contracts with sponsors etc.,
• the cost and nature of expenses.The principles to be considered are illustrated by way of 3 examples at BIM50606