Investigations into footballers’ tax affairs TREBLE this season as 246 potential breaches checked

Nearly 250 footballers were under investigation by HMRC over potential tax affairs breaches during the 2019-20 season. 

Business advisor company UHY Hacker Young Group made Freedom of Information (FOI) requests to HMRC, with this season’s total going up by 87 compared to last previous season. 

Furthermore, 25 football clubs were investigated over tax affairs, which is two more than last season, while 55 agents or agents fees were looked at by HMRC this season.

HMRC investigated 250 footballers over tax breaches during the 2019-20 season

25 football clubs and 55 agent payments were also investigated due to tax reasons by HMRC

Breaches into image right deals, whereby players are paid additional fees for advertising and other image-related means, were also investigated. These fees are only taxed at the 19 per cent corporation tax rate compared to the 45 per cent income tax rate for high earners, such as Premier League players. 

Image right payments can also be paid to a company, or even placed in off-shore accounts which can reduce tax even further. 

UHY Hacker Young’s Elliot Buss told the Daily Telegraph that some footballers are not aware of tax regulations, despite their hefty wage packet, and that mistakes in either completing or remembering to pay tax are made regularly.

Mr Bus said: ‘If you are second-choice left-back in the Championship getting paid a great deal in image rights payments, then this is likely to trigger an investigation by the taxman.

UHY Hacker Young’s Elliot Buss said that some footballlers do not know how to pay taxes  

‘You may have to make a robust argument to HMRC to show how the value of the image rights has been arrived at.’

‘Despite having a very substantial income, many young footballers don’t get the advice they need when it comes to tax. 

‘Often they don’t realise they need to pay tax on the fees that the club pays the agent on behalf of the player when they sign a new contract. That frequently results in errors, investigations and hefty penalties.’

An HMRC spokesperson said the company is working hard to support the football community in the coronavirus pandemic period and is looking forward to more co-operation with clubs and players.