		<div class="wpcnt">
			<div class="wpa">
				<span class="wpa-about">Advertisements</span>
				<div class="u top_amp">
							<amp-ad width="300" height="265"
		 type="pubmine"
		 data-siteid="111265417"
		 data-section="2">
		</amp-ad>
				</div>
			</div>
		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/01/crackdown-on-top-rate-tax-loophole.jpg"><img class="alignnone size-full" title="A crackdown on attempts to avoid the top rate of income tax by reclassifying salary as payments for 'image rights' has been laucnhed" src="http://londonglossy.com/wp-content/uploads/2011/01/min-crackdown-on-top-rate-tax-loophole.jpg" alt="A crackdown on attempts to avoid the top rate of income tax by reclassifying salary as payments for 'image rights' has been laucnhed"/></a></p>
<p>Tax investigators are cracking down on attempts to avoid the new 50p top rate of income tax by reclassifying salary as payments for &#8220;image rights&#8221;, HM Revenue and Customs has confirmed.</p>
<p>The issue emerged as the Sunday Times reported that a number of prominent Premier League footballers had taken advantage of the little-known provision to save millions of pounds in tax.</p>
<p>According to the newspaper, more than 50 players are making a tax saving of 22% by having a proportion of their salary paid through image rights companies, which are liable to corporation tax at 28% rather than income tax at 50%.</p>
<p>And in some cases, it was claimed that players are paying as little as 2% tax by taking money from the image rights companies as loans, which are classed as benefits in kind.</p>
<p>Payments for image rights can be made to people &#8211; often high-profile performers or sports personalities &#8211; whose physical appearance and name have a commercial value in their own right.</p>
<p>Footballers could earn image rights payments for the use of their pictures on merchandise or their names on replica shirts.</p>
<p>According to the Sunday Times, players have rushed to set up image rights companies in the wake of the introduction of the 50p tax rate on earnings over £150,000 by Chancellor Alistair Darling 18 months ago.</p>
<p>A Revenue and Customs spokesman said: &#8220;HMRC are well aware of attempts to use image rights as well as other schemes to avoid the 50p rate of tax.</p>
<p>&#8220;The taxation of image rights is a complex area, where the tax treatment will very much depend on the facts of the particular case.</p>
<p>&#8220;The Government has made an additional £900 million available to HMRC to ensure the tax rules are respected across the board.&#8221;</p>
			<div style="padding-bottom:15px;" class="wordads-tag" data-slot-type="belowpost">
				<div id="atatags-dynamic-belowpost-69e325cf36f29">
					<script type="text/javascript">
						window.getAdSnippetCallback = function () {
							if ( false === ( window.isWatlV1 ?? false ) ) {
								// Use Aditude scripts.
								window.tudeMappings = window.tudeMappings || [];
								window.tudeMappings.push( {
									divId: 'atatags-dynamic-belowpost-69e325cf36f29',
									format: 'belowpost',
								} );
							}
						}

						if ( document.readyState === 'loading' ) {
							document.addEventListener( 'DOMContentLoaded', window.getAdSnippetCallback );
						} else {
							window.getAdSnippetCallback();
						}
					</script>
				</div>
			</div>
Discover more from London Glossy Post
Subscribe to get the latest posts sent to your email.
