HMRC cracks down on £37 million image rights loophole
14 May 2020
HMRC cracking down on loophole that allows overseas players to dodge tax on image rights payments. Clubs also saving money on this manouvre.
Players can avoid paying any tax on image rights payments through offshore companies.
HMRC potentially losing £37 million a year in corporation tax from overseas players.
HMRC has stepped up efforts to crack down on a £37 million a year loophole that enables overseas players to earn one-fifth of their salaries tax-free.
Sources close to the taxman confirmed to offthepitch.com that it was increasing its focus on overseas players that were suspected of avoiding tax on their image rights payments.
Current arrangements allow players to receive up to 20 per cent of their salaries in image rights payments, which are treated as separate payments.
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