HI,
We have a client who earns his living as an athlete. His sponsorship money is paid through a UK LImited Company but prize money is paid to him directly. He has been told that 30% of this can be directed towards his company, but I have no experience of this area. Anyone helpfully point me in the right direction?
KFK
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Sounds unlikely. He, personally, is the one winning the prize.
Have you looked at the HMRC BIM on the subject of athletes' 'trading'?
I have - sometimes what the client hears from others is a little difficult to track down in reality. The BIM in this instance gives no clarity, nor makes any reference to the ‘30% rule’. I’m not surprised, this is most likely to be an accountant’s interpretation of the rules diluted and confused by another athlete before being passed on to our client.