The taxman is targeting soccer stars through its new “Affluence Team”: set up to tackle tax avoidance and tax evasion by those high earners not quite wealthy enough to be dealt with by the High Net Worth Unit.
HMRC estimate there are about 350,000 people with personal wealth over £2.5m: unsurprisingly including many Premier League and Championship footballers and managers. The new 100 strong “Affluence Team” is being funded out of a new investment of £917m by the Government: aimed at increasing tax compliance through more tax investigations and interventions. A total of 2,000 new tax investigator posts are being created.
HM Revenue & Customs are particularly concerned about clubs paying legal or other fees on behalf of players. For instance the taxman believes it is common practice for players being transferred to have their agents’ fees paid by the buying club or even a third party. The taxman said: “When a third party pays a fee to an agent acting on behalf of an employee, the fee may count as part of the employee’s taxable earnings and so be liable to tax.” Lynam Tax experts have seen an example of a Premiership club paying the whole of the divorce settlement of one player!
What does it mean to me?
If you have net assets of over £2.5 m (including your house) you could be targeted by this new unit: particularly if you are in an area of work deemed “high risk” by HMRC, such as footballers or City traders.
How can Lynam Tax help me?
If you are undergoing a tax investigation or a compliance check then specialist help from Lynam Tax Enquiry Experts could save you from a red card. Our massive experience will almost certainly save you tax and penalties. And we will relieve the stress and hassle of an intrusive investigation.
For a free, confidential chat about your tax affairs call Paul Lynam now on 0845 643 9997.