Footballers face new tax bill
The Inland Revenue will hit football players hard in 2004 with an introduction of a new tax on money paid to agents who secure lucrative transfer deals.
Even though the players themselves do not actually receive the money, the Revenue argues that the players benefit from the agents’ work as it represents a ‘benefit in kind’, according to the Evening Standard.
A successful transfer, would see a footballer paying tax at a rate of 40%, and with agents regularly receiving more than a £1m in fees this could mean a bill of more than £400,000.
All Premiership and Football League clubs have been informed of the new ruling, and the tax is expected to only be imposed on future deals if they cooperate with the Revenue.