One to froth over:

Asked whether he would run more often in Britain if tax laws change – a factor in him having stayed away in the past – Bolt said: “As soon as the law changes I’ll be here all the time.

http://www.independent.co.uk/sport/olympics/athletics/usain-bolt-wins-third-gold-medal-of-london-2012-as-jamaica-claim-new-world-record-in-4x100m-relay-final-8034788.html

But while most nations charge athletes 50 per cent tax on their appearance fees and prize money, the UK is unusual in its decision to demand a cut from a sports person’s money from sponsorship deals.

Stephen Dunham, an independent tax expert, warned that Britain’s Olympic sporting legacy could “undermined” by HMRC’s unrelenting stance.

He said: “The danger is that the UK will be seen as ‘closed to sport’, deterring organisers from considering the UK as a location for their event and prompting athletes to question whether a UK event should be in their schedules.”

http://www.standard.co.uk/news/london/usain-bolt-does-runner-from-uks-tax-laws-as-worlds-fastest-man-says-it-is-not-worth-him-taking-part-in-races-in-britain-8046121.html

You earn the money, you pay tax on it – I don’t understand the problem?

The problem is that it’s out of line with other nations, and as a results sports professionals are less inclined to spend time here competing. For something like tennis it’s not so bad – players just go to Wimbledon and opt to miss the Queen’s tournament, but for something like athletics, they’ll miss events so that they don’t go over the threshold for time spent and hence get taxed.

I think it’s the international sponsorship deals. I guess the fee isnt directly related to the event or time spent in the UK. In the illustration given, a pro rata (by time) tax on his sponsorship income for the period he is in the uk to compete for, say, a £150k appearance fee is greater than this fee, so he would effectively lose money for appearing in the UK. So why would you if you didnt have to?

He doesnt say he has any problem paying tax on his appearance fee and UK originated income.

You earn the money, you pay tax on it – I don’t understand the problem?

Tell that to Chris Hoy……oops!! sorry, he’s a national treasure and a hero isn’t he so he’s exempt

That’d be Stephen Dunham, of Dunham Consulting, who will take a sizeable wedge of your pie to ensure that you pay as little tax as possible on the rest of it.

Independent my arse. 😛

You earn the money, you pay tax on it – I don’t understand the problem?

Did you actually bother to read the article?

His agent Ricky Simms said if the fee had been earned in London, he would also have been liable for taxation on worldwide sponsorship earnings accrued during his time on British soil.

While he would have only been in the UK for a matter of days, Bolt’s contract with Puma alone is estimated to be worth £12.5 million meaning his final tax bill combined with travel costs could have outstripped his fee.

Well, then the problem is with other nations, not us. If he’s in the UK, and he’s being paid by a company to promote their products while he’s here, then he should pay the normal rate of tax on that.

Edit: yes, I did read the article. So he’s being paid to promote Puma – does he stop doing that when he’s in the UK?

Perhaps we could all club together to help pay the tax bills of wealthy sports people. We haven’t had any really decent ones here in ages.

Also, if you’re going to look at it on a financial basis, Bolt just got a huge amount of international publicity paid for by the British taxpayer – which is bound to help him earn a lot more in future.

Presumably though he is paying tax somewhere on his sponsorship? (Well maybe not if he has a clever accountant) so shouldn’t have to pay it again..

Presumably though he is paying tax somewhere on his sponsorship? (Well maybe not if he has a clever accountant) so shouldn’t have to pay it again..

Yes, and he can pay proportionately less tax in Jamaica. I don’t think it’s being taxed twice he’s objecting to, it’s being taxed once…

why don’t the competitors build in an extra cash clause for UK appearances? It’s a key market so get the sponsors to cover it if they want their brand pushing here.

To be fair unless his ‘home’ tax nation (presumably Jamaica) reduce his tax bill for time he’s out of the country then he would be paying tax twice so it is unfair.

Yes, and he can pay proportionately less tax in Jamaica. I don’t think it’s being taxed twice he’s objecting to, it’s being taxed once…

Tax laws are funny things, if you think the UK system is bad, don’t try and get your head arround the USA system!

Oh well.

From listening to Radio 4 this morning Stoner has it right. It’s not the tax he would pay on his appearance fee but the other taxes he would be liable for.

Tax laws are funny things, if you think the UK system is bad, don’t try and get your head arround the USA system!

You don’t have to tell me, I’m a dual national 🙂

If he’s paying the full top rate of tax in Jamaica on all his earnings, then he might have a point.

The “Why would you” run here if your total tax bill is greater than your net income from UK payments is particularly relevant since he probably get’s paid his sponsorship money whether he runs here or not.

The Tax’im brigade would basically be requiring him to do additional work for which he has to pay more than he earns. Barking.

Indeed.

Surely he could arrange his accounts so tht he’s paid sponsorship in Monaco if he wants to, and just happens to wear puma stuff the rest of the time too? Appreance fee’s etc would attract tax localy wherever you are, but surely sponsorship would be paid wherever you file your tax return (unless he’s getting an apperance fee from Puma?)

TISAS – that’s the problem, UK taxman wants a slug of his overseas (i.e. monaco sponsorship income) prorata for the time he’s in the UK. He has no issues paying appearance fees tax on UK appearance fees earned.

I’d guess that winning the London olympics has increased his earnings potentialfairly markedly though, stoner. You could argue that it was the most significant work he’s done in 4 years

If he only ran meets in Jamaica, we’d probably never have heard of him

I’d guess that winning the London olympics has increased his earnings potentialfairly markedly though,

Indeed, but theres a tax holiday for the olympics so its irrelevant. Its the things like the AXA grand prixs and diamond series that lose out as he wont come for those as the holiday wont apply.

Can he not just do a sweetheart deal? That’s what all the other big tax avoiders seem to do.

Hartnett has retired Im afraid.

Indeed, but theres a tax holiday for the olympics so its irrelevant.

Not really – the only reason he can demand such high sponsorship amounts is because he does things like win at the Olympics. Which we paid for and he got to appear at for free.

I like the idea of sending round the heavies to collect a windfall tax from each and every gold medal winner against their future awesome earnings as a result of UK Plc’s immense philanthropy 😉

I guess my basic point is that people who earn huge amounts of money should MTFU and stop whining 🙂

tax holiday

oh, err right 😳 maybe I could read the links, hey ?
(how much did I save in that fortnight, I wonder?)

Still, after the olympics it’s the high-profile overseas comps that make him rich via sponsorship, trading off his big wins by being seen on global TV wearing their trainers. He’s effectively being paid extra appearance money by puma.

Hartnett has retired Im afraid.

And there I was thinking he was avoiding my calls about my trip to Germany.

if he’s stupid enough not to make a donation to the tory party what does he expect ? 😕

Can he not just do a sweetheart deal?

Why not do a deal along the lines of if you can catch me I’ll pay. He could be chased around the Olympic track by a sweaty overweight middle aged tax inspector(surely we can find one of them on here)and his liability could be reduced for each complete lap he stays ahead. That should ensure that he’s pays very little tax and the Inland Revenue can sell tickets to make up for their loss of revenue.

As an aside, who pays for the medals awarded at the Olympics, I guess the IOC, so that’s be McDee’s and the like?

Back on-topic, I guess sporting events that attracted big name stars will start suffering as they stay away because of our tax laws.

Back on-topic, I guess sporting events that attracted big name stars will start suffering as they stay away because of our tax laws.

I look forward the Tour de Seychelles.

There’s already Tour of Luxembourg 😉

Few laps round the country and then pop into your friendly IFA/Tax planner for a quick Fiscal Cha-cha-cha! 😉

So those folk who think he should pay tax on his total earnings while in the UK; if you’d a weeks’ work in, say, Denmark for your employer would you expect to have to pay a 1/52 of your salary at their rate?

So instead of getting one of these he should just have got 45% of one?

But, this cannot be, there must be a mistake

Its as if, surely not, oh noes…

Well, there goes one of the benefits of TeeJ not being around anymore.