Accountancy Solutions’ Post

IR35 and avoid tax, no you Neil McCann Not! You may be offered schemes that wrongly claim to get around the off-payroll working rules. If you need to find out how to recognise tax avoidance schemes, aimed at contractors and agency workers, give us at Accountancy Solutions a call!

⚽⚽⚽ Updated HMRC Guidelines for Football Agents, Clubs, and Players on Dual Representation Contracts⚽⚽⚽ HMRC have released updated guidelines explaining their view of the correct tax treatment of football agent/intermediary fees. Key points to consider 🏆: 1️⃣ Dual Representation: The guidelines clarify HMRC's stance on dual representation, emphasising the need for a commercial justification for the split of agent fees between player and club services. 2️⃣ Audit Trails: A strong emphasis is placed on maintaining detailed records and evidence to support the tax position taken in dual representation contracts. 3️⃣ FA Regulations: The guidelines address the new FA Football Agent Regulations effective from 1 January 2024, reminding stakeholders that compliance with FA rules does not negate the need to consider these guidelines. 4️⃣ Employment Reporting Obligations: The document outlines the reporting obligations for clubs when paying agents' fees on behalf of players, including the correct handling of PAYE and National Insurance contributions. 5️⃣ VAT: Commentary is also provided in respect of the recoverability of VAT on dual representation contracts, including evidence and record keeping to be maintained in support of any recovery. #sportstax #sportslaw #football #footballagents #fifa #theFA #transferwindow

⚽️ EVERTON HIT WITH BIGGEST POINTS PENALTY IN PREMIER LEAGUE HISTORY ⚽️ #EvertonFootballClub have today received an immediate 10-point deduction after an independent commission found them guilty of breaching the Premier League's Profit and Sustainability Rules (PSRs). The decision follows a complaint made by the Premier League earlier this year that the club’s losses for the 2021/2022 season exceeded the sum permitted by the PSRs. The case was referred to an independent commission to determine. During the proceedings the club admitted it had breached the rules, but the extent of the breach was disputed. Following a 5-day hearing, the Commission determined that "Everton's PSR calculation for the relevant period resulted in a loss of £124.5million, which exceeded the threshold of £105million permitted under the PSRs." What followed was a 10-point deduction, plunging the club into the relegation zone. Everton said they are "shocked and disappointed" by the ruling and have vowed to appeal. The PSR’s core objective is to ensure that clubs operate within their financial means. They were introduced following concerns that clubs were spending a disproportionate amount on players than they were earning in ticket sales, merchandise and other income, running the risk of accumulating unsustainable levels of debt. The 10-point deduction marks the biggest sanction in Premier League history, and serves as a landmark moment in the clampdown of extortionate and irresponsible spending in football and will prevent clubs from attempting to buy their way up the league pyramid. The full decision can be read below.👇⬇️

As a Finance and Accountancy recruiter and fanatical football fan, I have real mixed feelings on the below and the FFP situation more generally: https://lnkd.in/eQqCjt_Q Be great to hear the thoughts of anyone more initiated than me from either the football family or the Finance and Accounting world! #ffp #finance #footballbusiness

⚽️Football Agents & Clubs have new HMRC Guidance to consider when paying Agent Fees💷 The guidelines are for both: 👩💼 football agents, and 🏟️football clubs. They deal with agents’ fees charged when a player: 📝transfers from one club to another, or 🤝negotiates a new contract with their current club. The guidance is also useful to: ⚽️football players 🧑🤝🧑coaching staff 🏢professional bodies and advisers that represent and advise clients These guidelines also outline HMRC’s views on dual representation contracts🤷♂️ including: ⚠️helping clubs, players, coaching staff and agents understand approaches HMRC see as increasing or lowering compliance risk ⚠️providing advice on the audit trails, evidence and documents that should be kept to support any tax position ⚠️explaining HMRC’s view of the latest Football Association (FA) Football Agent Regulations which were published on 1 January 2024 setting out any employment reporting obligations https://lnkd.in/eiQfe5fw

Read my in-depth analysis of the recent Stuart Barnes IR35 case on AccountingWEB.co.uk. He lost in the Upper Tribunal last week having won at the FTT last year. The case gives analysis of the third stage of RMC, the 12 factors used by the FTT and why the Upper Tribunal remade the decision instead of remitting it back to the FTT again. I applaud this decision as it saved everyone a lot of time and money. The decision, however, didn't go so well for Stuart Barnes but he can, of course, appeal it. This is the fifth consecutive win for HMRC. So, this is the fifth time the Upper Tribunal has decided that the FTT made an error in law in deciding on IR35. Four of those cases are on TV presenters and one was on an IT contractor. I think it is time for a statutory test. #IR35 #Contractors

#Everton has been deducted a further 2 points by the The Premier League Independent Commission, taking their points deduction total to 8. The latest 2-point deduction is for the 4-year period ending 2022/23, which includes seasons impacted by COVID-19 (average 2019/20 & 2020/21, 2021/22, 2022/23). This follows a 2022/23 loss of £89.1m. An unprecedented decision by the panel, given the "double jeopardy" and punishment already faced by Everton. This type of event is not legislated for the in PL Handbook but appears to have been considered in the decision to punish the club with a two-point deduction this time round. The club will appeal...thoughts? #footballfinance #footballfinanceprofessionals #psr #profitabilityandsustainability #premierleague https://lnkd.in/eG7UuTF9

If you’re a fan of sport ultimately being resolved by lawyers, there has been good news this past week. If you’re a fan of Everton, less so. Everton’s 10 point deduction for breaching the Premier League’s financial rules emphasises the increasingly litigious nature of sport – as have the subsequent reports that Burnley, Leeds and Leicester intend to seek £300m in compensation from Everton. This trend is unlikely to be reversed any time soon and so sanctions and disputes of this type will be here to stay. I appreciate that some may argue that increased litigation is not good for sport but on the flip side if you spend millions on [insert basically anyone Everton have signed in the past 5 years] and you’re not punished with results on the pitch, some may also argue this process has ensured that justice has been done. Eyes will naturally turn towards the current investigation into Man City for 115 alleged breaches of the financial rules between 2009 and 2018, which has been ongoing for a number of years. If Man City are found guilty, there seems to be a high chance of significant satellite litigation. By way of example, Arsenal finished 5th and 3 points behind Man City in 2016/17 – might they decide to bring a claim for the losses they suffered from missing out on Champions League? Or what about the Aguerooooo goal to win the title for Man City in 2012? No mention of Chelsea will be tolerated. https://lnkd.in/exU27S3D

Now here's an interesting discussion..... No disrespect to Gareth Southgate because he is a decent individual. But if Gareth Southgate wasn't a former footballer, and now Manager/Coach of England, what would his profession be? I personally think Gareth Southgate would be an accountant. As we all know, accountants are merely bean counters, regardless of the colours, but moreso, accountants don't take risks, always reside on the air of caution, plus will be negative to anything they don't understand. So what does everyone else think? All the players at Gareth Southgate's disposal, and system options, could be seen as potential TAX mitigation, and/or legal TAX avoidance. Sport is business, business is sport. This is just an interesting sideline after all 🏴󠁧󠁢󠁥󠁮󠁧󠁿🏴󠁧󠁢󠁥󠁮󠁧󠁿

News this morning that Everton have had a 10 point deduction for breaking English football’s Profit and Sustainability Rules. The club acknowledges that it has overspent across the past three years but only by 9million and largely because of interest charges on the new stadium and Covid impacts which it argues should be considered in mitigation. The Premier League claims the disputed sum is 20million. Either way this is small beer in the world of modern football, so why has a huge 10 point deduction been handed down for a seemingly small accounting dispute? Two factors seem to be in play - money and power. Football has been threatened with an independent regulator and needs to act tough to argue it can control its own house. When the so-called ‘big six’ announced they were looking to leave to set up their own super league they were hit with a collective fine of 22m - about one day’s legal fees across those big clubs. The football world and observers said the Premier League didn’t have the stomach to fine it’s own members then, so needed to act tough next time. Of course, now that City and Chelsea are facing similar allegations but on a huge scale, a precedent has been set - one the Premier League may come to regret. And of course, the money. Man City are facing 115 charges which are far more egregious but are backed by a sovereign fund and will be lawyered up in a way Everton or many other clubs will never achieve. The Premier League will have looked at the cost of contesting the 115 charges City face and declined to move forward. Also, despite paying the fine, none of the ‘super league six’ withdrew their desire to leave. The EPL knows this and recognises that their league without Liverpool, City, United, Chelsea, Spurs and Arsenal will fail to command the TV media rights deals it currently enjoys and for most clubs, that revenue loss will be fatal. It can be argued Everton have been hung out as an example to ward off the regulators while a blind eye or unwillingness to act leaves the current status quo in play for others. Everton will appeal, they need to quickly go on the front foot and be clear about their circumstances and situation and galvanize not just their own fans but football supporters worldwide. Everton are guilty of a minor accountancy infringement, the penalty should reflect that and calibrate against the 20million pound fine 6 clubs shared for actively moving to dissolve English football as we know it. #everton #epl #sportbiz #footballfinance #nsno