It looks like

[Deeranged]

Deeranged.
It could be that a number of players have their wages paid into their own limited company.
This allows them to legally minimise their tax as they they are able to withdraw their wages in the form of dividends.
However people who have set up a limited company to minimise tax do not qualify for the furlough scheme and have to sign on.

That's how I used to work Islay and it required an agent to act as 'middle man' to recruit and receive payment. I wonder about this because unless this system is in place the typical player would have no need of an agent for 95% of their career, this would possibly only be required when they're looking for a move, and yet they retain an agent throughout their careers who must be getting paid somehow.

If the higher level players are operating under limited or umbrella company scenarios I doubt too many will be struggling as a result of the current scenario as their basic contracts will likely be paid for the duration. If they are struggling then they are not managing their finances effectively.

[hmac]

Deeranged.
It could be that a number of players have their wages paid into their own limited company.
This allows them to legally minimise their tax as they they are able to withdraw their wages in the form of dividends.
However people who have set up a limited company to minimise tax do not qualify for the furlough scheme and have to sign on.

There’s no tax benefit to do that now.

[hmac]

That's how I used to work Islay and it required an agent to act as 'middle man' to recruit and receive payment. I wonder about this because unless this system is in place the typical player would have no need of an agent for 95% of their career, this would possibly only be required when they're looking for a move, and yet they retain an agent throughout their careers who must be getting paid somehow.

If the higher level players are operating under limited or umbrella company scenarios I doubt too many will be struggling as a result of the current scenario as their basic contracts will likely be paid for the duration. If they are struggling then they are not managing their finances effectively.

The taxman has been closing these doors.

[Deeranged]

The taxman has been closing these doors.

Have they finally got their way with IR35?

[islaydarkblue]

There’s no tax benefit to do that now.

That is strange as two weeks ago I read an article in the financial section of a national Sunday newspaper where it stated that an employee earning the same salary paid less in tax if they were paid through their limited company instead of PAYE. The employee being paid through his limited company was taking his salary in dividends with the tax rate for basic rate taxpayers being 18%.
There was also a director of a small limited company ‘greetin’ on the BBC news about not being able to receive 80% of his salary under the furlough scheme as he received his salary in dividends from his limited company.
I seem to remember reading in the Dundee Football Club Limited annual accounts that Dave McKinnon when he was Chief Executive of Dundee Football Club had his salary paid to his own company rather than through the PAYE system.

[hmac]

That is strange as two weeks ago I read an article in the financial section of a national Sunday newspaper where it stated that an employee earning the same salary paid less in tax if they were paid through their limited company instead of PAYE. The employee being paid through his limited company was taking his salary in dividends with the tax rate for basic rate taxpayers being 18%.
There was also a director of a small limited company ‘greetin’ on the BBC news about not being able to receive 80% of his salary under the furlough scheme as he received his salary in dividends from his limited company.
I seem to remember reading in the Dundee Football Club Limited annual accounts that Dave McKinnon when he was Chief Executive of Dundee Football Club had his salary paid to his own company rather than through the PAYE system.

Yes it was true but IR35 specifically targets those who clearly have only one job, let’s say a footballer, and who only claim to be a company for tax avoidance. It’s not quite there yet they had to push it back a little in time as it caused a huge issue for London Underground who’s maintenance men and tradesmen were all set up as limited companies.

The government is rightly fixing such ‘loopholes’ but I hope they also go after big businesses who are simply more skilled at avoidance than the treasury is at collecting.

[hmac]

Have they finally got their way with IR35?

They have generally but it’s pushed back a bit as they caught quite some little fish in their big net.

[hmac]

They have generally but it’s pushed back a bit as they caught quite some little fish in their big net.

Update - on March 17 they pushed it back again due to Covid.

[deecom]

when i worked offshore, i operated as a limited company, (DEECOM) .Gordon brown closed down many of the loopholes,but some cleverbugger always finds a way round it.
at one time you had to have a secretary,(normally your wife).
i retired about five years, and then you had to keep back 21% for tax.
my costs were about £120 for my accountant and about £150 per year for various insurance policies and endemity,you also had to invoice the client after each trip, dont know if football players have to invoice after each game?

[hmac]

when i worked offshore, i operated as a limited company, (DEECOM) .Gordon brown closed down many of the loopholes,but some cleverbugger always finds a way round it.
at one time you had to have a secretary,(normally your wife).
i retired about five years, and then you had to keep back 21% for tax.
my costs were about £120 for my accountant and about £150 per year for various insurance policies and endemity,you also had to invoice the client after each trip, dont know if football players have to invoice after each game?

The issue for footballers (And everyone else) is that under IR35 if it’s clear you only work for once business and in fact it’s your job they can go after you same as an employee. It was the old way to do it but will be highly difficult in future.