July 6th, 2017 / Insight posted in MKS Comments

Rangers loses tax avoidance case: comment from Mike Hayes

“This case involved the use of an employment benefit trust to provide loans to players and other employees of the old Glasgow Rangers Club (RFC 2012),” says Mike Hayes, a tax partner with Kingston Smith. “Recipients of the loans then had reduced salaries. The Supreme Court ruling confirms an earlier decision that these payments should be treated as earnings and taxed under PAYE with NIC also being due. Other businesses, including other football clubs, which used the same or a similar scheme will now receive Follower Notices from HMRC requiring them to pay the tax due based on this decision. This could have serious financial consequences for those involved.”