HMRC investigations into the UK’s football industry netted the organisation an extra £110m last season, new data has claimed.
A total of 68 tax investigations were opened in the year to April across players, clubs and agents – down on 118 from the previous accounting period – and netted an extra £110m for HMRC coffers, according to FOI data gathered by accounting firm UHY Hacker Young.
It comes amid questions surrounding whether Manchester City could be investigated for further tax payments after being found guilty by an independent panel of over 100 finance-related charges lodged by the Premier League.
The Commons Treasury Committee had sent a letter to HMRC chief JP Marks CB asking whether they would retrospectively look at Manchester City’s financial situation and a reply from the tax gatherers stated that “while taxpayer confidentiality prevents Mr Marks from commenting on any potential ongoing investigation into the club, the Permanent Secretary has reassured the Committee that HMRC works constructively with bodies within football and considers action when there is information which indicates a potential tax risk”.
HMRC making tax moves
And data covering much of last season suggests that HMRC gained an extra £13m in tax from 40 investigations opened against players across football, an additional £87m from 11 cases against clubs and £10m – up from £2m the year prior – from 17 investigations against agents.
It comes as image rights payments are set to be taxed as employment income from April 2027 after legislative changes.
Elliott Buss, partner at UHY Hacker Young, says: “Professional football has a long history of arrangements designed to artificially avoid and even evade tax.
“HMRC already subjects the industry to a lot of scrutiny, but it is doubtful that they catch everything that is going on.
“Agents’ fees have become one of HMRC’s main targets. With substantial sums now being paid to agents, HMRC is looking much more closely for cases of tax evasion and avoidance.”
An HMRC spokesperson told City AM: “Our aim is for everyone to pay the tax that’s legally due, no matter who they are. We continue to work with the football industry to ensure the right tax is paid.”