England players in dispute with the FA over the payment of taxes with bonus for reaching the final of cut euros
England players embroiled in a dispute with the FA over paying taxes when Gareth Southgate’s stars are told to put up with him after losing … with a bonus package for reaching the Euro 2020 final cut by £ 2.5MILLION
- England players are frustrated after a dispute with the FA over paying taxes
- His bonus for reaching the Euro 2020 final was slashed from 7.8 million pounds to 5.25 million pounds.
- Situation that could now compromise a commercial and sponsorship employment contract
- Squad expected to get £ 300,000 each, but instead received £ 200,000
England’s Euro 2020 finalists have been told to ‘hang on’ after falling short as a dispute over payment threatens to engulf their World Cup preparation.
It has been revealed that Football Association officials were forced to make an embarrassing adjustment to the way they pay the team, on the advice of tax authorities.
A source close to the players said they weren’t impressed by the way the FA has handled a situation that could jeopardize a new contract with the team for commercial and sponsorship work.
England players have been frustrated after a dispute with the FA over paying taxes
Harry Kane and the team had been promised a £ 7.8 million package to reach the Euro final.
Captain Harry Kane and the team had been promised a £ 7.8 million Euro 2020 bonus package for reaching the final.
Not only did they miss the football grand prize when they suffered a heartbreaking loss to the Italians, but they also saw the bonus drop to £ 5.25 million.
The team, which had pledged to donate the cash to NHS charities if they won the tournament in the summer, expected to receive £ 300,000 each, but pocketed £ 200,000 instead.
FA officials made the adjustment after HM Revenue & Customs informed them that they had to pay a higher tax rate on those bonuses.
Much to the frustration of the England players, the bonus was reduced to £ 5.25 million.
“This is all part of a general crackdown on the HMRC to pay the right amount of taxes to sole proprietorships,” said tax expert and former Leeds chairman Gerald Krasner.
“It is happening in all areas, not just in football. The players will have to put up with it. ”
Under a system agreed upon before Euro 2020, the bonuses were subject to 19 percent corporate tax because they were considered commercial payments.
It was thought that it was fair to treat the money as a commercial payment because it is obtained through the same FA cash pot as England’s endorsement deals. However, HMRC said the money must be paid directly to players and not through image rights firms, so it is subject to the maximum tax rate of 45 percent.
A source close to the players said: ‘They are not being irrational. Your income comes from FA sponsorship income and should therefore be treated as business income. Several players are not impressed with the FA and how everything has been handled here. ‘
The dispute could jeopardize a new contract with the staff for commercial and sponsorship tasks
The switch to England player pay comes as the FA tries to agree a new contract with the team for future sponsorship and commercial work.
The FA chiefs want an agreement to be signed at the international break in November.
However, this is believed to be unlikely, due to concerns that various players have about pay, taxes and the amount of time they will have to spend on promotional work.
The source added: ‘The FA plans for this agreement to be signed in the November holidays, but it is doubtful unless the players are given guarantees.
“If not, they could refrain from doing any commercial activity for the World Cup.”
Players have concerns about pay, taxes, and the amount of time required for promotional work.
The team had to wait for its euro bonus until the FA received its tournament payments in full from UEFA and had repaid a Bank of England loan of £ 175 million.
The FA recently received the last installment of the 21.33 million pounds owed by UEFA and repaid the loan in full last month.
Under the terms of the loan to help the FA mitigate the impact of the pandemic, the governing body was prohibited from paying bonuses or dividends until the debt had been paid.
The FA declined to comment on the matter.