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Premier League stars to pay more tax

Are the top professional footballers overpaid? Well you would have to say yes after watching the England performance against Montenegro. Montenegro are no Brazil but surely when it comes to how much players are paid and how they minimise their tax bill is between the club, the player and their asdvisors.

The taxman has identified top professional footballers as potential "underpayers" of tax but surely HMRC should be looking at the banking sector first, rather than a soft option. Professional footballers have a short carear and clearly financial management is a key part to preparing for the future.

The tax service has plans to investigate the money trail in professional football but PFA boss Gordon Taylor argues that Premier League stars will pay out more than half their salaries in PAYE, while an average top-flight career lasts only eight years.

The CEO of the PFA went onto say: "Tax avoidance is what no end of accountants are working full-time on to try to make sure that companies and individuals are not paying too much tax.

"They can come to the end of a career and they have not had the best tax advice and that's it. Then they have got to look after themselves for a long, long time.

"So I would advise any individual in any profession to get the best possible financial advice from accountants and make sure the money is paid in the most effective and tax efficient way. There's nothing wrong in that."

The government has put aside £900m for HMRC  to ensure tax rules are met. In a recent statement on Sky News they said that they are also "aware of a potential tax issue concerning the payment of agent fees".

The concern is when an agent he is working for the club rather than player in a transfer deal. ( League rules state that an agent can not work for both the club and the player)

HMRC said: "When a third party pays a fee to an agent acting on behalf of an employee, the fee may count as part of the employee's taxable earnings and so be liable to tax."

Taylor went on to say: "It can get very cloudy when you've got an agent who has worked for a player in the past, specifically, and then next minute he is working for a club and it will raise questions, and may raise eyebrows, but that has to be accounted for by the player, the agent and the club.

"That's what the FA rules require."

Deals struck on players' image rights, the use of the player's name by clubs for commercial reasons are also understood to have attracted the interest of the tax authorities due to the rate of tax paid.

GM

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