Over 300 footballers investigated by HMRC over tax avoidance

329 professional footballers in the UK are currently under investigation for tax avoidance, according to reports.

The news comes in the wake of HMRC increasing their efforts to close tax loopholes in elite sport, with just 93 players being probed during the 2020/21 campaign.

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As reported by the Sun, the number of clubs being investigated has also increased in this period. 31 clubs have now raised suspicion, along with 91 agents.

HMRC are currently working with the FA’s Compliance Project to ensure a decrease in tax avoidance in the game.

One of the key aims is to crack down on the use of image rights deals. These agreements allow players to earn increased sums from sponsorship deals by setting up a firm to manage their likeness.

This makes their earnings subject to just 19% Corporation Tax as opposed to the top-bracket Income Tax the majority of footballers fall into. HMRC also believe that commissions paid to agents in these deals should also be taxed.

There has already been pushback though, with Newcastle United hiring a legal team to challenge a tax bill they have been hit with.

Source of the article

Author: XenBet

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