19 Jan 2017 21:16:19
Question for Ed002 - are football players registered as individuals for tax purposes, i. e. paid PAYE, or are they registered as limited companies?

I was listening to a debate on TalkSport earlier about the money footballers earn and it made me think about how much tax they pay. In theory the enormous money from abroad that's pumped into the PL through broadcasting rights and therefore into players' pockets could actually be a huge benefit for the economy, if they are paid PAYE?

{Ed002's Note - Actually a really good question but a generally boring answer in the modern day. Back in the fairly recent day (a) all EPL clubs have returned the Revenue's questionnaire regarding the use of trusts and the payments of expenses; (b) a number of EPL clubs were already negotiating a financial resolution; (c) at least one EPL club had already settled with the Revenue was now in discussion with them over some rather more trivial issues that will require a number of players to make settlements; (d) at least one Championship club settled a small amount; (e) at least one EPL club cancelled additional perks (free tickets to games etc.) following some discussions with the Revenue over another issue; (f) There are a number of clubs that made payments in to Trusts; (g) two EPL clubs have settled a separate matter related to the payment of money related to the image rights of a player who has represented both side; (h) that the Revenue are not simply looking at trusts, but at all payments made to and on behalf of players.

There have been instances in the past where players have been paid via offshore trusts, limited companies for services rendered to the club and in tax-exempt oil paintings and cars. These were referred to as “loopholes” and they have pretty much all gone by the board now, although I know of one now ex-EPL player who was until not too long being paid via his residency of Monaco.

The clubs all realise that there was a need to resolve these issues and to settle because the consequences of litigation are potentially very harsh. It won't be perfect, but it won't be that bad. Other counties are ahead or behind England on this but the days of yore have pretty much moved on with respect to abuse.}


1.) 20 Jan 2017
20 Jan 2017 07:52:12
Sounds like a mess to me Ed. Also sounds like some were sailing pretty close to the wind. I am surprised there have not been any cases as per Spain and Messi. Perhaps our tax collectors are more reasonable? lol


2.) 20 Jan 2017
19 Jan 2017 21:49:45
Thanks Ed. I know in Trent years HMRC has moved to close many loopholes such as giving employees gift vouchers as perks etc, and I guess tickets for friends and family given to players would fall into that bracket.

Similarly the ability to pay a company's named directors in dividends at solely 20% corporation tax has been almost completely abolished.

Surely the 'right of substitution' definition on a limited company would also come into effect here, because there is now way you could argue that that would be the case for a professional footballer setting themselves up as a limited company.

That said, it could explain Oumar Niasse.

{Ed002's Note - Much of the limited company, trust type approaches are behind us now.}


3.) 20 Jan 2017
19 Jan 2017 22:36:38
I hadn't thought about the clubs' positions but of course they would have avoided paying statutory levies such as employer's NI, pension, death in service etc if players were registered as limited companies. They would only have paid VAT on invoice values and that could have been reclaimed if the club was VAT registered.

Frightening to think how much players and clubs would have avoided paying given that the legislative changes and loophole closures were so recent.