S&W The Pulse

Over the next two episodes we’ll be discussing the importance of tax for professional sports people. In episode part one, Martin Rankin an Associate Director in our London tax group joins us, we’ll be discussing current issues with agent’s fees.Seeing a number of enquiries from HMRC in this area, querying the fees paid by clubs to agents in respect of player transfers and contract renegotiations.Common area where queries crop up with HMRC which struggles to understand the nature of transfer negotiations and the relationship between players, clubs and agents.  HMRC often seek for documentation confirming a position, which simply does not exist because the common way of doing business is word of mouth and on a handshake.What is the background to this issue?When player signs for a club there will be a fee due to the agent for the work carried on behalf of the club and the player, reflecting agent’s role as an intermediary bringing club and player together.Part of the fee relates to work done for the player and p