The way in which sportspersons and entertainers earn their income can create complicated tax implications and reporting in the UK and worldwide. As well as specific income based on their services, individuals can be paid by brands for using their names which can create additional complications in respect of tax exposure.
Where personal companies are involved, there can be further complications and reporting required. The later extraction of funds also need specific advice to ensure tax efficiency.
If you are a non-resident individual who comes to the UK for a sporting event or show you can be liable to all of your UK earnings during that period. You may also be liable to UK taxes on your worldwide endorsement/brand income for the proportion of your time spent in the UK. Different calculations can be elected here, and the different terms of each endorsement contract may need to be assessed individually.
Entities paying sportspersons and entertainers also need to ensure they are compliant with the various tax rules, especially when relating to paying foreign entertainers. This can include the requirement to withhold income tax and pay this directly to HMRC.
How we can help
If you are in the sports and entertainment industry, or are an agent acting on behalf of people in this industry, we can help.
We work with various sports individuals as well as entertainers in the media, TV and film space, to advise on the tax exposure for both themselves and their businesses. We can assist you with income planning as well as your international exposure and structuring of potential endorsement opportunities.
We specialise in residency and international aspects including the UK tax implications of international sportspersons and entertainers entering the UK for specific events, such as Wimbledon, The Open and Silverstone.
We can assist with advice surrounding your income and contracts, but also the compliance cycle for you and your business throughout the year.
