Tax Implications of Football Agents’ Fees: Employer Duties and VAT Considerations

• Guidelines focus on Employer Duties and VAT aspects of football agents’ fees and dual contract representation
• Split in agent fee must be based on commercial reality of contract negotiations
• Allocation of agent fee between player and club services impacts income tax, National Insurance contributions, and VAT liability
• Fees allocated to club or player incorrectly increase risk of HMRC Compliance Check
• Tables illustrate tax impact of agent’s fee paid directly by club and declared as club or player services
• Example assumes agent and club are VAT registered
• Correction of existing VAT return should follow error correction notice outlined in VAT Notice 700/45.

Source: gov.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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