Skip to main content
CLOSE

Charities

Close

Corporate and Commercial

Close

Employment and Immigration

Close

Environmental, Social, and Corporate Governance

Close

Fraud and Investigations

Close

Individuals

Close

Litigation

Close

Planning, Infrastructure and Regeneration

Close

Public Law

Close

Real Estate

Close

Restructuring and Insolvency

Close

Energy

Close

Entrepreneurs

Close

Private Wealth

Close

Real Estate

Close

Tech and Innovation

Close

Transport and Infrastructure

Close
Home / News and Insights / Insights / No ‘extra time’ for footballers as HMRC clamps down on tax evasion

There is a dual perception of football’s modern relationship with tax. On the one hand the impact of taxes on footballer’s phenomenal wages presents them as contributing significantly to the public. In 2013-2014 it was reported that £2.4 billion had been paid by footballers in tax. Yet there is also extensive public dissatisfaction with HMRC for failing to thoroughly investigate suspected tax avoiders amongst clubs, players and agents.

HMRC have been trying to clamp down on tax evasion from footballers and football clubs and are currently investigating Newcastle United and West Ham United over suspected tax fraud, conducting early-morning raids on their headquarters.

A similar situation occurred 10 years ago when the City of London police investigated high-level financial crimes following ongoing suspicion of bribery among English Premier League Football Clubs. The offices of Newcastle United, Portsmouth and Rangers were raided, as was the home of Harry Redknapp, and club owners and directors Milan Mandaric, David Sullivan and Karren Brady were arrested. However, everyone was cleared of tax evasion and no legal action was taken against any of the football clubs. The police were therefore left red-faced, made worse by Redknapp successfully challenging the legality of their search warrant.

HMRC’s chief executive, Jon Thompson, said that the most significant tax evasion risk in football is ‘the legitimacy of image rights’ arrangements, which can lead to players qualifying as non-domiciles and receiving payments offshore. He went on to state that investigations are continuing into 43 players, 12 clubs and 8 agents. Several clubs have been involved in making settlements and HMRC told the Guardian last November that it had taken over £80 million of additional tax from clubs player and agents. This, however, is only a fraction of the £2.4 billion of annual tax reportedly paid by the Premier League.

HMRC knows it must produce results in this investigation or else risk a repeat of the 2007 debacle. Public attitude against tax evasion of large corporations and very wealthy individuals is growing, so HMRC will undoubtedly be feeling the pressure.

Related Articles

Our Offices

London
One Bartholomew Close
London
EC1A 7BL

Cambridge
50/60 Station Road
Cambridge
CB1 2JH

Reading
The Anchorage, 34 Bridge Street
Reading RG1 2LU

Southampton
4 Grosvenor Square
Southampton SO15 2BE

 

Reading
The Anchorage, 34 Bridge Street
Reading RG1 2LU

Southampton
4 Grosvenor Square
Southampton SO15 2BE

  • Lexcel
  • CYBER ESSENTIALS PLUS

© BDB Pitmans 2024. One Bartholomew Close, London EC1A 7BL - T +44 (0)345 222 9222

Our Services

Charities chevron
Corporate and Commercial chevron
Employment and Immigration chevron
Environmental, Social, and Corporate Governance chevron
Fraud and Investigations chevron
Individuals chevron
Litigation chevron
Planning, Infrastructure and Regeneration chevron
Public Law chevron
Real Estate chevron
Restructuring and Insolvency chevron

Sectors and Groups

Private Wealth chevron
Real Estate chevron
Transport and Infrastructure chevron