If you are a foreign performer or sportsperson appearing in the UK you are liable to pay tax on earnings linked to UK appearances. However, international players participating in the Wimbledon championships this week look set to benefit from more than the good weather due to a relaxation in the UK tax rules applied by HMRC.
In previous years overseas competitors were charged prorated tax on their global income (including endorsements) meaning that the more days they spent in the UK, and the more tournaments they played, the more tax they owed. However, a new ruling has come into affect which will see taxes calculated instead on the number of UK events performers participate in as a proportion of all appearances made per year worldwide. Such a change has been music to the ears of international tennis stars including Spain's Rafael Nadal who returned to play at this year's Queen’s club championships, traditionally viewed as a warm up to Wimbledon, after a four-year absence which it was cited was due to the previous legislation. The new ruling, which it is hoped will ease the financial burden for visiting athletes and performers, has also been given a friendly reception by tennis-loving Prime Minister David Cameron.
Bambridge Accountants specialise in providing tax advice for the creative industries and US expatriates. For more information on how this new ruling may benefit you, and for advise on working out your taxes, please contact us on +44 (0)20 3757 9290 or at email@example.com