HMRC abandons PGMOL football referees case: Are contractors and IR35 hit?

After almost ten years of litigation, HMRC has confirmed to ContractorUK that it will not appeal the latest decision in the long-running PGMOL case. That confirmation, provided yesterday to this website, brings one of the UK’s most closely watched employment status disputes to a close.  

There is a nuanced impact on IR35, and therefore for contractors, but to call it a 'significant shift' for those affected by these much-disliked rules would be an overstatement.

What does PGMOL stand for?

The judgment that HMRC says, below, that it won’t be appealing was published on May 1st, 2026. In it, the First-tier Tribunal (FTT) concluded that football referees engaged by Professional Game Match Officials Limited —‘PGMOL’ — were self-employed for tax purposes.

PGMOL statement from HMRC

On July 1st 2026, an HMRC spokesperson told ContractorUK:

“The tribunal decided that these referees were not employees based on the specific facts of the case, and we won’t be appealing this decision.”

Does PGMOL’s win affect IR35?

While some headlines are portraying PGMOL’s win as a ‘significant shift’ in IR35, the reality is more measured, writes Angela Fergusion, partner and head of employment taxes at PSTAX.

This non-IR35 case does not change the IR35 legislation or indeed even the operation of the Off-Payroll Working (OPW) rules. Instead, ‘PGMOL’ reinforces how employment status should be assessed.

What is the PGMOL case about?

The PGMOL case is about HMRC’s belief that, for the tax years 2014/15 and 2015/16, football referees/officials for Professional Game Match Officials Ltd should have been employees for tax purposes.

HMRC was seeking more than £583,000 from PGMOL because it argued that match fees paid to those officials constituted earnings from employment for the purposes of both income tax and Class 1 NICs.

PMGOL disagreed, saying the working practices and engagement of the footy referees meant they were self-employed for tax purposes.

Five court decisions later, HMRC says it won’t argue any longer, thereby nullifying the £583k tax demand and the considerable interest and penalties (but unaffecting all the professional fees PGMOL would have paid over the last decade).  

What are the core principles of PGMOL, now that HMRC has capitulated?

The PGMOL litigation has reaffirmed that employment status is determined by looking at the overall relationship between the engager and the worker.

Status factors such as the following three remain important to that determination:

1. Control
2. Mutuality of Obligation
3. Right of Substitution

However, PGMOL reaffirms that none of these employment status factors (which are also IR35 status factors) is decisive on its own.

What does the PGMOL win mean for employers?

Organisations (end-users) must consider all the facts, including both the contractual termsand the day-to-day working practices, before reaching a status conclusion.

And it’s true that HMRC’s decision not to pursue a further appeal against the FTTs’ May 2026 judgment provides welcome certainty after years of legal debate.

But it isn’t true that HMRC’s capitulation should be interpreted as a relaxation of the IR35 rules.

What does the PMGOL verdict now standing mean for the public sector?

For public sector bodies operating the OPW rules, the practical implications post-PGMOL winning at the FTT are limited.

Organisations remain responsible for determining the employment status of contractors engaged through intermediaries and issuing compliant Status Determination Statements (SDSs).

However, the PGMOL verdict now standing does provide some useful reminders for taxpayer-funded outfits engaging limited company contractors.

How does PGMOL’s court win affect public sector organisations?

Post-PGMOL, public sector organisations hiring contractors should continue to:

• assess each engagement on its own facts rather than relying on blanket determinations;
• ensure contracts accurately reflect the reality of the working arrangements;
• gather sufficient evidence to support each SDS;
• periodically review long-term engagements where working practices may have evolved; and
• maintain clear records of the decision-making process.

Does the PGMOL decision mean you need to use an IR35 tool?

As a status case, PGMOL also highlights the importance of exercising professional judgement. In fact, while status assessment tools can support decision-making, they should not replace a thorough review of the overall relationship between the parties.

For organisations with robust governance processes already in place, the PGMOL decision should provide reassurance that a balanced, evidence-based approach remains the correct approach.

Takeaways for contractors

Contractors should not assume this decision in favour of PGMOL means more engagements will automatically fall Outside IR35.

Every engagement remains fact-specific, and many public sector roles involve working arrangements that differ significantly from those of the football referees considered in the PGMOL case.

Nevertheless, to successfully navigate IR35 and the OPW rules, contractors should ensure four things — as a minimum. Notably that:

1. Written contracts accurately reflect how they work in practice;
2. Clients are provided with complete and accurate information when status assessments are undertaken;
3. They understand the reasoning behind any Status Determination Statement; and
4. They use the client-led disagreement process, where they believe an SDS does not reflect the reality of the engagement.

A well-supported status determination statement should always consider the complete picture rather than focusing on individual factors in isolation.

What is PSTAX’s reaction to HMRC not appealing PGMOL?

The conclusion of the PGMOL litigation is welcome because it provides greater certainty rather than creating new uncertainty.

For public sector organisations, there is no need to revisit well-reasoned employment status decisions simply because HMRC has ended this almost decade-long, contentious case.

Instead, and now the dust is settling on PGMOL, the FTT’s judgment in favour of the taxpayer —and HMRC’s tacit acceptance of it — reinforces:

• The importance of robust governance;
• Evidence-based assessments; and
• Ensuring that working practices align with contractual terms.

Does PGMOL change IR35 or status?

Crucially, the fundamentals of employment status have not changed.

Organisations that continue to assess each engagement individually and document their reasoning related to status remain well placed to demonstrate compliance with the off-payroll working rules — as was the case before HMRC confirmed it won’t chase the football referees body any further.

Where to get off-payrolling working expert advice in 2026/27?

We’re actively supporting public sector organisations with independent employment status reviews, governance audits, SDS quality assurance, dispute resolution and IR35 training. If you'd like to discuss how the PGMOL decision may affect your organisation, reach out to me here.