Many footballers facing financial ruin by HMRC

[Uncle C]

Not before time.

http://www.theguardian.com/football/2015/jan/23/footballers-tax-demands-hmrc

 

[HitchinSeagull]

I struggle to sympathise with them, a billion pounds in tax avoidance schemes, and the only excuse is I left someone else to do the Maths, so I shouldn't have to pay my avoided tax.

 

[Dan Aitch]

How about renaming this thread to 'Millionaire Footballers Exposed as Tax-Avoiding Criminals'?

 

[Bwian]

If they are looking to avoid paying what they owe maybe they should get in touch with Palace's financial advisers?

 

[Motogull]

I struggle to sympathise with them.

Fair enough, but I bet their agents who have fleeced fortunes from these players won't be having these issues. They're the ones I'd like to see the back of.

 

[The Merry Prankster]

How about renaming this thread to 'Millionaire Footballers Exposed as Tax-Avoiding Criminals'?

Quite. From the thread title you'd think it was HMRC's fault.

 

[Tom Hark Preston Park]

So many of these daft lads must fall into the clutches of seriously dodgy financial advisers whose only interest is in feathering their own nest.

 

[Hampster Gull]

Good news. Tax shouldn't just be for the proletariat

 

[beorhthelm]

Quite. From the thread title you'd think it was HMRC's fault.

it is. or the governments. they (Brown in this case) create tax breaks to encourage investment in somthing. people take up the offer, then when its realised later that its been more popular than expected, HMRC decide its going to claw back the tax relief given. if its "avoidance" it was so at the time, so why didnt they do something then?

i dont understand why people think its OK to change the rules like this, everyone avoids tax where they can, but shake their fists when those with more money try to do the same.

 

[dwayne]

it is. or the governments. they (Brown in this case) create tax breaks to encourage investment in somthing. people take up the offer, then when its realised later that its been more popular than expected, HMRC decide its going to claw back the tax relief given. if its "avoidance" it was so at the time, so why didnt they do something then?

i dont understand why people think its OK to change the rules like this, everyone avoids tax where they can, but shake their fists when those with more money try to do the same.

It is absolutely disgraceful.

HMRC backed many of these schemes at the time and have now decided to rob the poor buggers that signed up. Most people on this thread seem to have any clue about this topic.

 

[studio150]

However, under powers introduced after the 2013 autumn budget statement, HMRC can now demand to be paid a disputed tax amount upfront, even while a case is being heard. This is a reflection of the sterner, post-banking collapse view of tax avoidance.

The case is still ongoing, so a definitive answer of whether these investments were legal or not is outstanding, but to appease the masses the rich are targeted.

For those that are in favour of taking the money, no doubt you will be happy to replay any underpaid tax immediately rather than adjusting your tax code for future financial years.

 

[HitchinSeagull]

it is. or the governments. they (Brown in this case) create tax breaks to encourage investment in somthing. people take up the offer, then when its realised later that its been more popular than expected, HMRC decide its going to claw back the tax relief given. if its "avoidance" it was so at the time, so why didnt they do something then?

i dont understand why people think its OK to change the rules like this, everyone avoids tax where they can, but shake their fists when those with more money try to do the same.

You could be right, whats not clear is if they have been dishonest in claiming tax breaks they were never entitled to rather than having a legitimate tax scheme removed, I suspect its the former.

 

[Thunder Bolt]

It is absolutely disgraceful.

HMRC backed many of these schemes at the time and have now decided to rob the poor buggers that signed up. Most people on this thread seem to have any clue about this topic.

I agree. Some of these footballers trusted financial advisers to give them sound advice. Their families will suffer too.

 

[Creaky]

it is. or the governments. they (Brown in this case) create tax breaks to encourage investment in somthing. people take up the offer, then when its realised later that its been more popular than expected, HMRC decide its going to claw back the tax relief given. if its "avoidance" it was so at the time, so why didnt they do something then?

i dont understand why people think its OK to change the rules like this, everyone avoids tax where they can, but shake their fists when those with more money try to do the same.

Not only that but HMRC's view regarding the 'legality' of some of these schemes is being disputed through the courts yet because of new rules HMRC can demand payment before judgement has been made. It doesn't seem right to me that individuals can be made bankrupt due to HMRC demands that may be rejected by the courts.

I couldn't force anyone to make payment for a disputed debt until the court decided in my favour and I most certainly couldn't force a debtor into bankruptcy prior to a court hearing!

 

[Dave the OAP]

Well if the bankers and the multinationals who have profited from tax avoidance are being chased, then the same rules should apply to footballers.

If they want to spend their millions on stupid houses and cars, and then claim poverty, they can do one.

 

[Thunder Bolt]

Tax avoidance isn't illegal, tax evasion is.

What is a stupid house?

 

[drew]

Definitely uncomfortable about HMRC seemingly changing the rules retrospectively. I can understand footballers relying on financial advisers, they're not trained to be accountants so to a large extent they have been exploited. Most people rely on advice from one source or another. People use solicitors because they know the law and most people tend to trust their solicitor to a certain degree.

If the schemes were purely set up to avoid tax then they are fair game, but if the schemes provided the benefits they were supposed to, ie making films, then moving the goal posts sets a bad precedent. How many people on this board would be hit if HMRC decided that TESSAs or ISAs are merely tax avoidance and tried to reclaim it. Anybody remember MIRAS, what if HMRC came sniffing after the tax savings on that scheme. Or Tax relieve on pension contributions etc etc.

 

[beorhthelm]

If they want to spend their millions on stupid houses and cars, and then claim poverty, they can do one.

you seem to be confusing those at the top of the game earning millions with those in the middle and bottom who try to condense a career into two decades. this tax relief thats being targeted was open to anyone, there are many ordinary investors in the firing line. "thousands of people like you are being chased for a tax bill on a legal investment that HMRC want to change the rules on" doesnt make such a great story.

 

[User removed 4]

it is. or the governments. they (Brown in this case) create tax breaks to encourage investment in somthing. people take up the offer, then when its realised later that its been more popular than expected, HMRC decide its going to claw back the tax relief given. if its "avoidance" it was so at the time, so why didnt they do something then?

i dont understand why people think its OK to change the rules like this, everyone avoids tax where they can, but shake their fists when those with more money try to do the same.

This.

 

[dwayne]

Well if the bankers and the multinationals who have profited from tax avoidance are being chased, then the same rules should apply to footballers.

If they want to spend their millions on stupid houses and cars, and then claim poverty, they can do one.

Its not just multi millionaires that are getting done.

IT contractors that used tax avoidance loan schemes from years ago are now getting massive backdated tax bills.

OK you may say but when these schemes were set up HMRC gave them special reference numbers to state they were recognised and approved. They have since changed legislation and are now retrospectively billing and fining individuals on these schemes.

This is robbery in my eyes and I know of two hardworking people with families that went bankrupt over Christmas.

It's disgusting.