HMRC triples number of tax probes into footballers
The UK’s tax authority has tripled the number of investigations into professional footballers in the year to March as a part of a wider tax avoidance crackdown.
HM Revenue and Customs (HMRC) opened 246 probes into professional footballers in the year to March 2020, which was an increase from 87 in the previous year.
The FT reports that the HMRC also opened 25 investigations into football clubs and 55 that involved player agents, according to data obtained by accountancy firm UHY Hacker Young through a freedom of information request.
The increased number of footballers under investigation comes as a part of a concerted push by the UK’s tax body to focus on tax avoidance in the wake of the 2016 Panama Papers.
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An HMRC spokesperson told the FT: “We’re clear that everyone must pay what they owe under the law — regardless of their wealth, status or job. The department’s work in the football industry is a demonstration of this ongoing effort to help support the football industry and their members.”
Player agents are often responsible for managing finances for footballers, most of which have little experience in dealing with these areas.
UHY Hacker Young partner Elliott Buss said this meant that many players were just not aware of the risks in this area.
“For a young footballer who is unlikely to know a great deal about tax compliance, the choice between paying 19 per cent and 45 per cent in tax can seem like a very easy one,” he said.