In Accountancy Daily on 1st July, Jon Elphick and Sian Armitage examine lessons from the recent ruling in the AFC Hull “Tigers” v HMRC First Tier Tribunal.
Read the article here:- https://www.accountancydaily.co/football-players-image-rights-taxable-earnings
The tribunal ruled that Hull’s payments for the image rights of one of its high profile footballers, Geovanni Gomez, constituted a golden hand shake which should have been subject to payroll taxes rather than the lower tax rates of an image rights arrangement.
However, this case is invaluable as a road map to how to structure image rights arrangements correctly. For example, Jon and Sian explain how a club need to be able to demonstrate that they have the capacity to monetise a player’s image by having enough experience, resources and ability. That is, they need to show substance to the arrangement, not just the correct legal form.