Premier League clubs and their players are being investigated by HMRC over undeclared benefits enjoyed by players and their families, prompted by intelligence about non-disclosure of such benefits.
It has been reported by the 'Mail on Sunday' that HMRC investigators have interviewed finance directors at Britain's wealthiest clubs to gather more information about players’ benefits. Whilst HMRC has not confirmed their enquiries it is believed that they have been asking for details of free holidays, luxury accommodation and other gifts.
Items such as first class flights, holidays, company cars, use of club credit cards, health care, entertainment, child care and private security paid for by clubs would naturally attract the interest of the Revenue but it is difficult to understand how such clubs, who no doubt employ top accountants, would not apply the proper PAYE treatment to such straightforward benefits unless they seek to argue the exact nature of a benefit-in-kind. It has also been suggested that HMRC are even examining whether football clubs have properly taxed payments made to players for appearing on the clubs' own TV stations.
HMRC's High Net Worth Unit, that was established in 2009 to focus on 5,000 of the country's wealthiest and usually concentrates on the affairs of those worth £20 million plus, has sent out a questionnaire, entitled 'The Football Clubs Employment Issues Questionnaire', to at least 24 leading clubs requesting details of free holidays, luxury accommodation and other gifts. This information will then be matched against individual players' tax returns to establish if there has been any loss of tax to the Exchequer. In addition, clubs may also have to stump up Class 1A NIC on certain benefits.
Chelsea stars, John Terry and Frank Lampard, have both enjoyed trips aboard the club's owner, Roman Abramovich, luxury £72 million yacht. It was also reported that Lampard also used Abramovich's box at the O2 Arena in London to watch a Beyonce concert. It is these type of perks that, if they fall within the PAYE system and tax and NIC has not been accounted for, will light up the eyes of HMRC as there could be a substantial aggregate of tax arrears at stake. In its first year, the High Net Worth Unit raised £85 million of unpaid tax and is therefore quite accomplished in prising the lid off the treasure chests of the rich.
Leave a Reply