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Her Majesty’s Revenue & Customs (HMRC) are to investigate Premier League football stars and the clubs that they play for to establish the extent to which benefits are being granted to them. HMRC’s High Net Worth Unit has sent out questionnaires to the UK’s leading football clubs to demand details of the gifts footballers receive. The information received from the clubs will be cross-referenced against footballs’ individual tax returns to determine whether or not players are liable for unpaid tax or whether the football clubs themselves should be ordered to meet the cost of further National Insurance contributions.
HMRC investigators have refused to disclose details of the clubs that have been targeted by their investigations. Spokespersons from the clubs of Manchester United, Chelsea, Manchester City, Tottenham and Arsenal have all refused to comment. A spokesperson for HMRC confirmed that the questionnaire, entitled “The Football Clubs Employment Issues Questionnaire”, had been compiled to aid them in establishing the way in which clubs officially accounted for the benefits granted to footballers. The types of gifts considered to attract HMRC’s attention may include first-class flights and accommodation, holidays and the use of company cars and club credit cards.
Chas Roy-Chowdhury, who heads the taxation department at the Association of Chartered Certified Accountants, claimed that the benefits that football players received were all taxable, including holidays, some gifts, cars, medical care, mobile phones and meals. However, he added that HMRC may face difficulties enforcing their own rules as football players and their clubs may dispute the precise meaning of a benefit in kind.
Duncan Lewis’ employment law solicitors provide detailed advice on taxation and National Insurance contribution payment.