The widely publicised challenge by HMRC to the Portsmouth CVA has brought the topic of the taxation of football clubs back into the public arena. Ongoing tax issues for clubs in the UK include the treatment of payments made in respect of players’ image rights and recovery of VAT on football agents’ fees incurred on the negotiation of players’ contracts. To avoid a successful challenge from HMRC, clubs need to ensure that remuneration arrangements reflect reality and are properly documented. Other methods of remuneration, which are tax efficient and which meet the expectations of the players, should be considered also.
