HMRC warned to clamp down on super-rich and footballers

The Public Accounts Committee (PAC) has called for HM Revenue & Customs to take a tougher stance on those with very high income to build the public’s trust in the organisation.

According to the MPs, there is a lack of confidence in the tax system, creating an impression of the rich being subject to different rules. The Public Accounts Committee called on HMRC to focus on footballers to ensure that the regulations for image rights were tightened up. A spokesperson for HMRC stated that the wealthy received extra scrutiny and not special treatment.

Tax evasion by footballers was a particular concern, with the PAC revealing that HMRC currently has open inquiries into 12 football clubs, 43 football players and 8 agents. In some of the inquiries, the clubs were not in cooperation with HMRC. The report said that a voluntary agreement had been struck with HMRC, and the committee was “appalled” that it was not being adhered to in all cases.

Jon Thompson, HMRC’s chief executive, had told the PAC in December that he would like to see the way that footballers can reduce their tax bills come under review. The committee is concerned that the rules surrounding image rights are being abused. The chairwoman of the PAC, Meg Hillier, said that HMRC must work correctly and be seen to be fair, which she believed it had failed to do.

With affluent parts of Wirral known to be home to several Premier League footballers, rather than risk a hefty penalty and interest payments on top of a large tax bill, they may want to consider financial investment planning.

Tax Planning advice is not regulated by the Financial Conduct Authority.

Source: http://www.bbc.co.uk/news/business-38764923

Posted by Alan
3rd February 2017

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All blogs and news on Endeavour Financial Planning are for information purposes only and are not intended to provide advice. Please seek the advice of a financial advisor before making any financial decisions.

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