Reply to: Tax & Footballers

[AtW]

Maybe if you play darts.

MF is more into -

[d000hg]

35. What? Are you sure? Is being a professional piss head definition of being a sportsman?

Maybe if you play darts.

[MarillionFan]

They can shove it into their pension plan as sports people are allowed to access their pensions at 35.

35. What? Are you sure? Is being a professional piss head definition of being a sportsman?

[SueEllen]

That assumes that they take it out now - footballers have short careers. Better to let it accumulate, then trickle it out, or close it down and pay Entrepreneurs rate of 10% or CGT.

They can shove it into their pension plan as sports people are allowed to access their pensions at 35.

[AtW]

Clear now?

MF

Less of it graaaaaaaaaaaand daaaaaaaad.

If you don't have anything positive to say then shut the feck up and go feed your hungry kids.

Milan

[centurian]

Mind you - why don't that UK Uncut bunch start picketing Old Trafford on match days. After all, it seems that footballers are tax avoiders just like Philip Green.

Let's see if they have the balls (no pun intended) to do it. Almost certainly not.

[centurian]

Well, if they pay dividends then their company surely should pay Corp Tax - 28% currently if they get over £1 mln, plus they pay income tax 32.5% (50% rate taxpayer).

That assumes that they take it out now - footballers have short careers. Better to let it accumulate, then trickle it out, or close it down and pay Entrepreneurs rate of 10% or CGT.

Also the loan stuff appears to be a tax defference measure, rather than avoidance. They're hoping that the 50% tax rate is temporary, but if it doesn't, they'll end up with less money than if they'd just taken the salary.

[MarillionFan]

Well, if they pay dividends then their company surely should pay Corp Tax - 28% currently if they get over £1 mln, plus they pay income tax 32.5% (50% rate taxpayer).

So, in conclusion footballers are so stupid that they opted to 2% loan from their own company thinking they cut down taxes to that level?

No. In conclusion. The Daily Mail printed a bollocks story and you went off on a tangent not realising it was bollocks because you have no idea about how to run a business, economics or tax.

Clear now?

MF

[AtW]

So, in conclusion footballers are so stupid that they opted to 2% loan from their own company thinking they cut down taxes to that level?

[MarillionFan]

I just came across a good article debunking the DM article and clarifying things: Tax tease: Inaccurate Footie Tax story resurrected as ‘news’ | FavStocks

HAH!

[Kess]

I just came across a good article debunking the DM article and clarifying things: Tax tease: Inaccurate Footie Tax story resurrected as ‘news’ | FavStocks

[MarillionFan]

Maybe he is waiting for 50% income tax to be dropped soon, but if it takes more than 5 years wait then he might not get such a good deal out of this scheme...

The whole article is stuff and nonsense. They are operating in no different way to us for image rights. A photo of Sasguru in a gingham dress is worth almost the same as David Beckham in bed with three hookers. :straight faced smiley:

[Kess]

I am correct in saying that the loan paid at 2% is a loan. They still have to pay it back. So I don't see what the benefit is and why the DM raised it?

I think you're right. A director's loan should be repaid during the company's tax year, otherwise it gets taxed as a BIK. The 2% figure in the DM article seems to be completely spurious.

[AtW]

What is the benefit of taking 2% loans.

Maybe he is waiting for 50% income tax to be dropped soon, but if it takes more than 5 years wait then he might not get such a good deal out of this scheme...

[MarillionFan]

Photo of Rooney sells more papers.

HTH

Is everyone getting thicker on here.

What is the benefit of taking 2% loans. You still have to pay loans back, so it's not really (2%) tax is it!