Dodge tax like a footballer

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MrRobin replied

7 February 2011, 15:32
OK it's about EBTs and non-'close' companies. I wasn't aware of the difference.
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Bunk replied

7 February 2011, 15:32
Originally posted by MrRobin View Post

There have been a number of articles (probably just rewrites of the same original) recently on t'net about footballers using companies to lower their tax liability. For example:

Dodge tax like a footballer - Yahoo! UK & Ireland Finance

Basically, it says that footballers get the vast majority of their fees paid to a ltd company, and they then just take loans from the company and pay the current interest rate (2%) in charges, plus 20% in corporation tax.

First question is, I thought it was 4% and 21% respectively.

Second question is am I missing something? I thought there was an additional corp tax levy if you have a directors loan for more than a year? 25% of loan value isn't it?

Third question, can any of this be applied to contractors with ltd companies?

On a side note, I just did a quick Webcheck lookup on the companies mentioned in the article. Owen Promotions (Michael Owen) and Toocoo (David James) have their registered address at a tax company and a law firm respectively, but Theo Walcott's TJW (Promotions) is registered to a massive house in the country. Wonder if he left his own address on there.
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MrRobin replied

7 February 2011, 15:29
Originally posted by malvolio View Post

The objective is to run a business and to work for yourself, not to dodge tax. Meanwhile do a search on EBTs on these fora and see just how dangerous your suggestion really is...

I'm not trying to advocate the use of such schemes, I just want to understand if the article has it wrong or not...
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malvolio replied

7 February 2011, 15:27
The objective is to run a business and to work for yourself, not to dodge tax. Meanwhile do a search on EBTs on these fora and see just how dangerous your suggestion really is...
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MrRobin started a topic Dodge tax like a footballer

7 February 2011, 15:06
Dodge tax like a footballer

There have been a number of articles (probably just rewrites of the same original) recently on t'net about footballers using companies to lower their tax liability. For example:

Dodge tax like a footballer - Yahoo! UK & Ireland Finance

Basically, it says that footballers get the vast majority of their fees paid to a ltd company, and they then just take loans from the company and pay the current interest rate (2%) in charges, plus 20% in corporation tax.

First question is, I thought it was 4% and 21% respectively.

Second question is am I missing something? I thought there was an additional corp tax levy if you have a directors loan for more than a year? 25% of loan value isn't it?

Third question, can any of this be applied to contractors with ltd companies?
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