The chief executive of HM Revenue & Customs (HMRC), Jon Thompson, has told MPs he would like to see a review into the way footballers reduce their tax bills by shielding their image rights earnings from tax.
Speaking to the Commons Public Accounts Committee (PAC), HMRC’s head of enforcement, Jennie Grainger, said that dozens of players, agents and football clubs were under investigation by an HMRC’s dedicated team reviewing image rights, various sports, and the entertainment industry.
“Just on football itself, in the last two years, that team, and wider across HMRC, has brought in £158m in yield,” she added.
When commenting on the legitimacy of tax claims from image rights earnings, Ms Grainger said: “Has it been properly transferred? Has it been transferred for a fair value? Should there be income coming back to the UK depending on their residency status? All of those issues can be part of this.”
At Beavis Morgan, we provide a full range of business and tax advisory services, including image rights planning to the sports and entertainment sector – sports clubs, individuals, service and management companies, event organisers, governing bodies and a range of other sporting and entertainment individuals and organisations. Our services are tailored to the sector and our knowledge of the specific needs and challenges in this sector enable us to apply the right solutions for each individual circumstance.
In turn, if you are concerned about a tax enquiry into your affairs, worried that you may have possibly under-declared or, worse still, are you already under enquiry, our tax specialists, some of whom are former HMRC Inspector of Taxes, are well versed in dealing with all types of tax issues. We are also readily available to oversee HMRC disputes on your behalf, as well as to represent clients in appeal proceedings before the Tax Tribunal. In some situations we can also offer professional fee protection insurance, so the costs are covered in whole or in part.