Footballers tax avoidance scheme hit again
HMRC clamps down on Employer-Financed Retirement Benefit Schemes
HMRC has confirmed that it will clamp down on a tax loophole used by footballers to protect their pay packets.
The Employer-Financed Retirement Benefit Schemes (EFRBS) allow high earners such as footballers or bankers to pay 50% of their income at source into trusts, which prevents the Revenue from taxing them fully.
Accountancy Age revealed the EFRBS issues earlier this year after Cathy Corns, tax partner from Mercer & Hole, highlighted the problem.
The trusts can be used to buy assets such as property and are attractive to non- domiciled foreign players who can retain their money offshore.