Premier League clubs and their top players have been involved in a tax avoidance investigation resulting in nearly £900 million in payments, as per recent data. Since 2015, HMRC has instructed leading players, clubs, and agents to contribute a total of £888 million. Last season alone, the tax authority managed to reclaim £90 million. The breakdown of payments includes clubs disbursing £73 million, players contributing £15 million, and agents settling for £2 million, as revealed in a Freedom of Information request.
HMRC responded by explaining that the additional tax identified through their investigations is termed as yield. This yield encompasses various elements such as calculating additional revenue owed, preventing revenue loss from incorrect or fraudulent repayment claims, and estimating the impact of their interventions on customers’ future conduct.
Currently, there are 397 ongoing investigations, including tax examinations at 32 clubs in both the Premier League and Football League. The data from the FoI request disclosed that 277 players and 88 agents are under scrutiny.
The HMRC probe, initiated in 2015, has scrutinized 33 clubs for participating in a tax scheme that improperly claimed £17 million in public funds. The investigation commenced with searches at addresses associated with Newcastle United. While some clubs have resolved their tax disputes, others like Chelsea, Nottingham Forest, and Fulham remain under investigation.
Additional financial details revealed that various clubs, including Chelsea, Forest, Fulham, Manchester United, and Liverpool, received significant amounts in tax relief and credits from HMRC between different financial periods. Notably, Chelsea faced accusations from the FA regarding violations related to agent payments and player ownership structures in transfers during Roman Abramovich’s ownership.
Stuart Cotton, a complex financial investigator, emphasized the complexity of the issues surrounding payments to agents, image rights, and corporation tax within football. He highlighted that HMRC meticulously examines all deals to ensure compliance.
Furthermore, high-profile figures like Sir Alex Ferguson and footballers such as Oleksandr Zinchenko and Benjamin Mendy have encountered tax-related challenges. The Premier League’s substantial economic impact, contributing £8 billion annually to the UK economy, is supported by significant tax contributions of £4.2 billion to the UK Exchequer and the creation of over 90,000 jobs. Notably, a significant portion of these contributions benefits regions outside of London.
Despite the developments, a Premier League spokesperson declined to provide comments on the matter.