Tax issues for sportspeople and entertainers

David Ford, Partner, Private Clients

As a sportsperson and entertainer, your income may fluctuate and may come from a wide variety of sources.

Navigating the tax landscape can be quite complex so we have included a selection of some of our clients most frequently asked questions to help make it simpler.

Q  I live in Germany but work across Europe including the UK, can you assist me worldwide? 
A   Yes, Crowe UK is part of Crowe Global, with offices in over 145 countries. We routinely work with our colleagues around the world
      to ensure you meet your filing responsibilities in each country. 
Q   I have not registered to complete a tax return and I am concerned I might have missed the deadline?
A   We can deal with this for you and liaise with HMRC to try and minimise any penalties that may be due.
      You have six months (until 5 October) following the end of the UK tax year to register (5 April).
Q   I am spending the majority of my time travelling, are you able to establish my resident position? 
A   We are specialists in tax residence issues, so we can confirm what obligations you may have as well as providing any associated
Q  I receive sponsorship and endorsement income from my sponsors, how and where is this taxable? 
A   This depends on where you are resident and carry out your duties. These rules can be quite complex but we can review this for
Q  My overseas company invoices brands on my behalf, does that mean I don’t have to pay UK tax? 
A   Unfortunately, not, your earnings in the UK may still be subject to UK tax. Make sure you seek specialist advice on your
Q  Tax has been withheld from my payments in the UK but I live overseas, is that correct? 
A   Non-resident sportspeople or entertainers are subject to a special tax regime in the UK and it is common for them to be subject to
      withholding tax from their payments. 
Q  My earnings have been taxed in the UK and in Francedoes this mean I am paying tax twice?
A  You may have to pay tax twice initially but the UK has double taxation treaties with over 100 countries so we can help you navigate
     this difficult landscape and claim back any tax relief or foreign tax credit that may be available. 
Q  My annual earnings are approaching £80,000 is there anything I should be aware of? 
A  Yes, depending on where you are tax resident and the services you have provided you may need to consider whether you have to
     register for VAT. We can review this for you to ensure you are not subject to any late registration penalties.
Q  I perform all of my services in the UK to businesses, is it true it may be more beneficial to register for VAT? 
A   Yes, if you are invoicing VAT registered businesses, you may be better off registering for VAT. 

For more information on the issues discussed in this article or to discuss your individual circumstances, get in touch with David Ford or your usual Crowe contact.

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David Ford
David Ford
Partner, Private Clients