The Lifecycle Of An International Athlete - Key UK Income Tax Considerations For Non-Residents

This blog in our series for international athletes explains the key legal points regarding taxation that should be considered when coming to compete in the UK. Specifically, it addresses the following questions:

• Is there specific legislation that I should be aware of?

• Do I need to pay UK income tax?

• Will a service company help me to mitigate tax?

• Do I need to file a tax return?

• Can I reduce my fixed payments?

• Who is responsible for deducting withholding tax and accounting for it to HMRC?

• What if I become UK resident?

• Are there any concessions I can take advantage of?

The UK tax authority (HMRC) struggles with taxing international athletes in a proportionate manner within the current tax system. In particular, the UK will tax not only fees directly related to time spent in the UK, but will also seek to tax worldwide revenue (including image rights exploitation) on a percentage basis with reference to UK appearances in the tax year in question. Early negotiation with HMRC to explore the possibility of reduced withholding tax or to seek tax concessions is key for those sportspersons considering short term appearances in the UK. Different issues arise for those based in the UK for the longer term.