1 minute read
HMRC changes to the tax treatment of payments made to football agents
As an industry, football generates a significant amount of tax for hm revenue & Customs (HMRC), both directly through player salaries and indirectly through broadcast rights, tourism and hospitality and given the large sums involved, it is expected that it will continue to be a growing focus area for hmrC.
HMRC have been particularly focused on payments made to players for their image rights and payments made to agents. The number of footballers investigated by HMRC rose dramatically in the tax year 2019-20, increasing from 87 to 246 individuals. The number of investigations into the tax affairs of football agents also increased substantially, more than doubling from 23 in 2018-19 to 55 in 2019-20. it is also understood HMRC are currently investigating over 40 football clubs. HMRC’s overall additional tax collected from investigations into professional football in the year ending 31 march 2020, stood at £73.1m, more than double the previous £35.3m figure. HMRC has also instigated a number of criminal investigations into clubs, agents and players having conducted a number of dawn raids and made several arrests.
Advertisement
