Mahrez to Man City shock

[Babylon]

27 minutes ago, turtmcfly said:

Something wrong there. The money still has to go from the company to the person, at which point it's liable to personal income tax.

 

 

Are these companies wholly owned by the players?

"The taxman has struck a secret deal with Premier League football clubs which allows them and their superstar players to reduce their tax bills.

 

Under the agreement, clubs have been told they can pay up to a fifth of their footballers’ total pay packages to ‘image rights’ companies, rather than as part of their wages.

 

The deal allows fabulously wealthy footballers to reduce their income tax bills significantly. Instead they pay corporation tax at a lower rate on this part of their income. It also allows the clubs to cut the amount of National Insurance contributions they pay."

 

A relative of mine played at international level and did exactly the same thing.... I designed his company logo.

Edited 28 June 2018 by Babylon

[gw_leics772]

36 minutes ago, turtmcfly said:

Something wrong there. The money still has to go from the company to the person, at which point it's liable to personal income tax.

 

 

Are these companies wholly owned by the players?

As an accountant I can help here a little, but suffice to say, there are plenty of ways to get around this. Dividends at lower rates, also laid to family members. Wife's wage utilising her free pay. Also as it's unlikely to be needed by them to live, let it build up in the company and pay themselves a heavy wage after their football income dries up utilising tax free band and also 20% tax band. Investments, pensions. Donations from this where no tax has been paid ,(or at least minimal) and I work in general accountancy practice specialising in family owned businesses. I have link up a with experts for high net worth individuals, not that I have many as clients unfortunately.

 

Ps. Don't hate the player, hate the game.

[Jack1993]

18 minutes ago, Babylon said:

"The taxman has struck a secret deal with Premier League football clubs which allows them and their superstar players to reduce their tax bills.

 

Under the agreement, clubs have been told they can pay up to a fifth of their footballers’ total pay packages to ‘image rights’ companies, rather than as part of their wages.

 

The deal allows fabulously wealthy footballers to reduce their income tax bills significantly. Instead they pay corporation tax at a lower rate on this part of their income. It also allows the clubs to cut the amount of National Insurance contributions they pay."

 

A relative of mine played at international level and did exactly the same thing.... I designed his company logo.

 

How is Francis Jeffers?

[turtmcfly]

Just now, gw_leics772 said:

As an accountant I can help here a little, but suffice to say, there are plenty of ways to get around this. Dividends at lower rates, also laid to family members. Wife's wage utilising her free pay. Also as it's unlikely to be needed by them to live, let it build up in the company and pay themselves a heavy wage after their football income dries up utilising tax free band and also 20% tax band. Investments, pensions. Donations from this where no tax has been paid ,(or at least minimal) and I work in general accountancy practice specialising in family owned businesses. I have link up a with experts for high net worth individuals, not that I have many as clients unfortunately.

 

Ps. Don't hate the player, hate the game.

Sure. I run my own company and pay myself divis so I understand the very basic jist. It was the line about paying corporation tax instead of income tax which I had a problem with (although in terms of final numbers this may actually be about right!). 

 

I would have thought things like family members/wife's pay would be relatively tiny. And I didn't understand the 'pay themselves a heavy wage -> utilising free band 20%' since this only applies to the first 12/46K of income - again in footballing terms pin money, and relevant to any year they take out income.

 

I assume the image rights companies are based overseas, where initial corp tax rates can be reduced.

[turtmcfly]

24 minutes ago, Babylon said:

something

something else

 

Edited 28 June 2018 by turtmcfly

[turtmcfly]

7 minutes ago, turtmcfly said:

something else

 

 

Sorry Babs... I can't work out how to delete message! Nothing meant by this

[gw_leics772]

50 minutes ago, turtmcfly said:

Sure. I run my own company and pay myself divis so I understand the very basic jist. It was the line about paying corporation tax instead of income tax which I had a problem with (although in terms of final numbers this may actually be about right!). 

 

I would have thought things like family members/wife's pay would be relatively tiny. And I didn't understand the 'pay themselves a heavy wage -> utilising free band 20%' since this only applies to the first 12/46K of income - again in footballing terms pin money, and relevant to any year they take out income.

 

I assume the image rights companies are based overseas, where initial corp tax rates can be reduced.

You are right that it is only.the 12/46k but also the 100k bracket is still 5%. 

 

Didn't mean to come across as trying to teach you to suck eggs.?

 

As I understand it, as image rights are an "asset" i think they get away with treating it as a capital gain which gives another 11k free pay per year and they might also be able to wangle entrepreneurs relief. Ie let it build up paying only 19%, they can then wins it up and pay only 10% to take it all out in one go.

Might not be so simple re entrepreneurs relief but I've learnt that the more money you have,  the more access you get to even more intricate tax saving vehicles.

[HighPeakFox]

2 hours ago, turtmcfly said:

My point was less pedantic than you thought...

You just went down in @Buce's opinion... 

[WigstonWanderer]

1 hour ago, gw_leics772 said:

As an accountant I can help here a little, but suffice to say, there are plenty of ways to get around this. Dividends at lower rates, also laid to family members. Wife's wage utilising her free pay. Also as it's unlikely to be needed by them to live, let it build up in the company and pay themselves a heavy wage after their football income dries up utilising tax free band and also 20% tax band. Investments, pensions. Donations from this where no tax has been paid ,(or at least minimal) and I work in general accountancy practice specialising in family owned businesses. I have link up a with experts for high net worth individuals, not that I have many as clients unfortunately.

 

Ps. Don't hate the player, hate the game.

Didn’t IR35 cut off the dividends instead of wages thing. Very unpleasant shock that was when I was contracting and it came in

[Bunyip]

3 hours ago, Steven said:

He is on PAYE they all are and the base salary of 100k per week according to HMRC is as follows:

 

Your estimated take-home pay for 2018 to 2019 is

£53,207.23 a week

Barely enough to live on, no wonder he's pissed off.

[gw_leics772]

19 minutes ago, WigstonWanderer said:

Didn’t IR35 cut off the dividends instead of wages thing. Very unpleasant shock that was when I was contracting and it came in

Only in the public sector.

 

The additional dividend tax has closed the gap but still the best route for non IR35 companies (which is still the vast majority rightly or wrongly)

 

They are currently "consulting" on rolling it out to the private sector and propose to steamroller ahead despite massive criticism.

 

Watch this space. I suspect that the private sector will fight back far harder than the government's own employers.

[the fox]

3 hours ago, Sol thewall Bamba said:

That's easy to say when it's not your club I guess.

 haha. Very funny and original. The irony is, I wouldn't be called "a plastic fan" half as much if I was a fan of a "bigger" club

[chapero82]

2 minutes ago, the fox said:

 haha. Very funny and original. The irony is, I wouldn't be called "a plastic fan" half as much if I was a fan of a "bigger" club

Actually you would be called it more  

[Sol thewall Bamba]

12 minutes ago, the fox said:

 haha. Very funny and original. The irony is, I wouldn't be called "a plastic fan" half as much if I was a fan of a "bigger" club

Oh you would

[mozartfox]

Is this thread now switched topic to Tax matters?  If so, frigging excellent.

[sylofox]

14 minutes ago, mozartfox said:

Is this thread now switched topic to Tax matters?  If so, frigging excellent.

When was it last on topic?

[HoustonFox]

24 minutes ago, mozartfox said:

Is this thread now switched topic to Tax matters?  If so, frigging excellent.

 

9 minutes ago, sylofox said:

When was it last on topic?

Well nothing is happening with Riyad, so we need to keep ourselves entertained somehow. Can’t think of a more entertaining topic than the nuances of the tax landscape 

 

 

[gw_leics772]

30 minutes ago, mozartfox said:

Is this thread now switched topic to Tax matters?  If so, frigging excellent.

Hahaha. I looked for it then and got excited like a prize geek.

 

Couldn't find it so set one up.

 

 

[WigstonWanderer]

2 hours ago, gw_leics772 said:

Only in the public sector.

 

The additional dividend tax has closed the gap but still the best route for non IR35 companies (which is still the vast majority rightly or wrongly)

 

They are currently "consulting" on rolling it out to the private sector and propose to steamroller ahead despite massive criticism.

 

Watch this space. I suspect that the private sector will fight back far harder than the government's own employers.

Hmm

 

I wasn’t in the public sector, but that was about 18 years ago. I guess a lot has changed.

 

Anyway, Mahrez, get rid eh? Greedy bastard.

Edited 28 June 2018 by WigstonWanderer

[Wymsey]

Either Leicester have rejected approaches from Man City or the latter has given up from it or both, don't know; it's just getting tiresome as it's been dragging on for a while without any real substance.

[mozartfox]

Getting back on topic - VAT or Mehrwertsteuer as it is called here in Austria, is charged at 20%.  Is VAT still 17.5% in the UK?

[RODNEY FERNIO]

Lot of the real high earners , like Rooney, went down the EBT route loop hole.

HMRC have challenged this and looks like they will be successful...… tough titty Wayne....

probably why he's going to the States.

[st albans fox]

3 minutes ago, mozartfox said:

Getting back on topic - VAT or Mehrwertsteuer as it is called here in Austria, is charged at 20%.  Is VAT still 17.5% in the UK?

 Sadly not 

 

same as there 

[RODNEY FERNIO]

Remember tax ain't that bad at the moment …. the Beatles were being taxed at 98% in the Sixties

and back in the day there used to be a windows tax … where you had to pay tax on the number of

windows you had in your house.

Never been a tax on breathing though … so relax.

[Wymsey]

@Mark or @davieG, is it possible worth lock this thread now tbh?

The last few pages or so barely mentions anything about Mahrez and most genuine users, and unregistered guests, wanting to use the thread to see any developments/actual discussion on Mahrez may well feel fooled now this thread is off-topic.