- Confirmation that footballers ‘image rights’ may face clampdown
In the Budget, HMRC confirmed that it planned to seize £115m in the next five years from professional advisors who have enabled another person or business to use a tax avoidance arrangement that is later defeated by HMRC.
Jason Collins, Head of Tax at Pinsent Masons, says: “HMRC is likely to have a working list of who they want to target first with this measure. By the looks of it QCs, small accountancy firms, law firms and boutique advisors will be in their sights.”
“£115m is a very substantial amount. It begs the question as to whether HMRC intends to bankrupt some of the operators in the tax planning field that they consider to be on the fringe.”
“However, innocent accountants and lawyers could become collateral damage.”
“HMRC’s recent strategy on tax avoidance has been to deter people from engaging with it, be they the end user or advisor. HMRC is ready to utilise its powers as a deterrent.”
“In addition, The Budget confirmed that it plans to clampdown on ‘image rights’ and footballers which some view as disguised remuneration.”