Salaries to be investigated by HMRC

Forum to discuss everything that is Tigers related

Moderators: Tigerbeat, Rizzo, Tigers Press Office, Tigers Webmaster

teds
Silver Member
Silver Member
Posts: 670
Joined: Thu Mar 04, 2004 6:02 pm
Location: london

Salaries to be investigated by HMRC

Post by teds »

Interesting to see it looks like the tax man has decided to investigate premiership (inc Sarries) salaries.

https://inews.co.uk/news/hmrc-probes-en ... nts-904255
Cardiff Tig
Gold Member
Gold Member
Posts: 1390
Joined: Fri Jun 03, 2011 9:25 pm

Re: Salaries to be investigated by HMRC

Post by Cardiff Tig »

My money is on 90% of clubs being guilty...
Wayne Richardson Fan Club
Super User
Super User
Posts: 3838
Joined: Wed Dec 06, 2006 11:53 am
Location: The Salt Mines

Re: Salaries to be investigated by HMRC

Post by Wayne Richardson Fan Club »

This could get very interesting, you would hope the Clubs realised after Wendyball got found out, but we shall see.
To win is not as important as playing with style!
johnthegriff
Super User
Super User
Posts: 2013
Joined: Sat Dec 20, 2008 12:37 am

Re: Salaries to be investigated by HMRC

Post by johnthegriff »

If many clubs are found to be guilty and liable for large sums of money that they had not budgeted for that could be the end of professional rugby as there may not be enough clubs survive to mount a realistic competition.
Wayne Richardson Fan Club
Super User
Super User
Posts: 3838
Joined: Wed Dec 06, 2006 11:53 am
Location: The Salt Mines

Re: Salaries to be investigated by HMRC

Post by Wayne Richardson Fan Club »

& all have busted the Salary Cap.....
To win is not as important as playing with style!
TigerFeetSteve
Super User
Super User
Posts: 7415
Joined: Fri Jul 03, 2020 6:23 am

Re: Salaries to be investigated by HMRC

Post by TigerFeetSteve »

Well it could affect things but if significant numbers are affected I suspect a blanket knuckle wrap from Premiership Rugby, along with a fine to all involved.

The fact this story has been noted in reading Saracens accounts (I wonder why journalists are reading through their accounts so carefully). Well they only just filed their accounts to June 2019 (we have filed to June 2020 a couple of days later).

This means the investigation is noted in accounts that are from 21 months ago means the investigation is at least that old. I know HMRC have long investigations with regards to things like this, but when Andrea and Pete said all outstanding claims etc will be paid and settled before the end of this year's accounts, wouldn't have thought that a 2 year old investigation would be of the biggest concern to us. At very least I'd expect us to have made sure that the new contracts were bullet proof in this regard
Used to run around with an 11, 14 or 15 on my back.
mol2
Super User
Super User
Posts: 4581
Joined: Wed May 02, 2007 5:48 pm
Location: Cosby

Re: Salaries to be investigated by HMRC

Post by mol2 »

I suspect this issue about accounting and the tax man wanting to see individuals as employees rather than self employed contractors.
The former gets taxed as employed income rather than corporation tax. Then it is also subject to National insurance contributions from the individual and employer.
wellstiger
Gold Member
Gold Member
Posts: 896
Joined: Fri Dec 06, 2013 10:56 am

Re: Salaries to be investigated by HMRC

Post by wellstiger »

Well ......I suppose it was going to happen. I hope we are squeaky clean and all associated with us.
Is this the fall out related to Sorries????

Wonder when Amazon, Google etc are within their sights ( if ever ).
Traveller
Silver Member
Silver Member
Posts: 741
Joined: Fri Apr 27, 2018 9:46 pm

Re: Salaries to be investigated by HMRC

Post by Traveller »

Wayne Richardson Fan Club wrote: Tue Mar 09, 2021 9:37 am & all have busted the Salary Cap.....
That might be the case. It might not be the case. But how do you know that?
Scott1
Super User
Super User
Posts: 16783
Joined: Sun Dec 11, 2016 5:03 pm

Re: Salaries to be investigated by HMRC

Post by Scott1 »

I bet there’s a few clubs that gulped when they heard this news!
"Rugby isn't a contact sport,ballroom dancing is a contact sport. Rugby is a collision sport" Heyneke Meyer
Wayne Richardson Fan Club
Super User
Super User
Posts: 3838
Joined: Wed Dec 06, 2006 11:53 am
Location: The Salt Mines

Re: Salaries to be investigated by HMRC

Post by Wayne Richardson Fan Club »

Traveller wrote: Tue Mar 09, 2021 11:06 am
Wayne Richardson Fan Club wrote: Tue Mar 09, 2021 9:37 am & all have busted the Salary Cap.....
That might be the case. It might not be the case. But how do you know that?
If you have spent right up to the salary cap or close to it, but then some of your previous payments to players are reclassified as salary you are going to be in trouble, Quins went over before as they got their Maths wrong.
How many clubs spend every penny of the cap is another matter.
To win is not as important as playing with style!
TigerFeetSteve
Super User
Super User
Posts: 7415
Joined: Fri Jul 03, 2020 6:23 am

Re: Salaries to be investigated by HMRC

Post by TigerFeetSteve »

Wayne Richardson Fan Club wrote: Tue Mar 09, 2021 11:31 am
Traveller wrote: Tue Mar 09, 2021 11:06 am
Wayne Richardson Fan Club wrote: Tue Mar 09, 2021 9:37 am & all have busted the Salary Cap.....
That might be the case. It might not be the case. But how do you know that?
If you have spent right up to the salary cap or close to it, but then some of your previous payments to players are reclassified as salary you are going to be in trouble, Quins went over before as they got their Maths wrong.
How many clubs spend every penny of the cap is another matter.
Would have thought that we may have heard something in the last 2 years though if they found something amiss
Used to run around with an 11, 14 or 15 on my back.
bendy
Senior Member
Senior Member
Posts: 344
Joined: Mon Oct 15, 2018 4:31 pm

Re: Salaries to be investigated by HMRC

Post by bendy »

Bear in mind the salary cap has nothing to do with the taxman.

All he/she is interested in is whether the players have coughed up enough tax on their earnings. I doubt HMRC are going to "publish" (either privately or publicly) that "Leicester Tigers' total payment to players in the season 19/20 was £4m" or whatever.

Tax years not equating to Prem seasons is enough of a muddying feature alone.
Traveller
Silver Member
Silver Member
Posts: 741
Joined: Fri Apr 27, 2018 9:46 pm

Re: Salaries to be investigated by HMRC

Post by Traveller »

TigerFeetSteve wrote: Tue Mar 09, 2021 11:45 am
Wayne Richardson Fan Club wrote: Tue Mar 09, 2021 11:31 am
Traveller wrote: Tue Mar 09, 2021 11:06 am

That might be the case. It might not be the case. But how do you know that?
If you have spent right up to the salary cap or close to it, but then some of your previous payments to players are reclassified as salary you are going to be in trouble, Quins went over before as they got their Maths wrong.
How many clubs spend every penny of the cap is another matter.
Would have thought that we may have heard something in the last 2 years though if they found something amiss
So you don't know. You're guessing?
Tigerbeat
Moderator
Moderator
Posts: 7250
Joined: Mon Oct 01, 2007 9:14 pm
Location: The big wide world

Re: Salaries to be investigated by HMRC

Post by Tigerbeat »

Spending up to the salary cap is one thing but being able to afford it is another. I guess that there are some clubs that may not be able to afford the full salary cap due to their fan base, season tickets, ground costs or lack of investors such as they have at Bath, Worcester, Bristol and Exeter....Tigers being a Plc are heavily auditted so would be surprised if Tigers are over the limits.
SUPPORT THE MATT HAMPSON TRUST
www.matthampson.co.uk
Post Reply