Tax relief/write off



Montreal Mackem said:
Thats all that these charitable contributions are, it will cost them no money at all.
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Surely that's not a thing? I mean if someone's tax bill, for the sake of keeping things simple, is 50% of £5m, they pay £2.5m. If they give 500k to charity their taxable income becomes £4.5m so they pay 50% of that instead (2.25m). So aye, they lay 250k less in tax, but in order to do so they've had to give 500k to charity so its still cost them money. Always see this suggestion that people are somehow able to give money away and it costs them nothing but I've never understood it. Way I see it it's true that a 500k donation won't actually cost them 500k, but it certainly isn't free and it does cost them quite a lot. Happy to be corrected mind
 
Guinness Guzzler said:
Surely that's not a thing? I mean if someone's tax bill, for the sake of keeping things simple, is 50% of £5m, they pay £2.5m. If they give 500k to charity their taxable income becomes £4.5m so they pay 50% of that instead (2.25m). So aye, they lay 250k less in tax, but in order to do so they've had to give 500k to charity so its still cost them money. Always see this suggestion that people are somehow able to give money away and it costs them nothing but I've never understood it. Way I see it it's true that a 500k donation won't actually cost them 500k, but it certainly isn't free and it does cost them quite a lot. Happy to be corrected mind
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You can only deduct donations eligible for Gift Aid, and only claim if you have paid as least as much tax as the Gift Aid element. It's advantageous to higher rate payers because the relief is applied to your highest tax rate. Assuming all of that £500k qualified, they'd get tax relief of £250k (assuming they're on the top rate of 50%). So they're still £250k out of pocket. However, the charity will actually get £625k, the £500k from the donor, and £125k in Gift Aid from HMRC. Charity trustee's hat on here.
 
Grumpy Old Man said:
You can only deduct donations eligible for Gift Aid, and only claim if you have paid as least as much tax as the Gift Aid element. It's advantageous to higher rate payers because the relief is applied to your highest tax rate. Assuming all of that £500k qualified, they'd get tax relief of £250k (assuming they're on the top rate of 50%). So they're still £250k out of pocket. However, the charity will actually get £625k, the £500k from the donor, and £125k in Gift Aid from HMRC. Charity trustee's hat on here.
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Most of these players are set up as companies though are'nt they? So they will be on lower tax rates anyway.
 
Montreal Mackem said:
Most of these players are set up as companies though are'nt they? So they will be on lower tax rates anyway.
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no. setting up as a company cosntitutes third party ownerhsip..as the compay would own the players rights...and thats not allowed in the UK. footballers have to be paye.

they may also have companies for image rights tec..but the core income from the football club has to go through PAYE or the club would be breaching the rules of the competitiom.

The idiots urging footballers to take 30 per cent pay cuts are basically syaug the footballers should get less...but for example..joe lewis, a tax esile who owns spjurs..the glaers...tax exiles in the US...abreamawhich tax exile in monaco..get more..

if the players get their full slary the its taxed and can fund things in the UK..if the players dont get it..the owners do..who mostly arent in the UK..
but the cretins who want a moral victory at any cost cant see that/..
 
kildaremackem said:
no. setting up as a company cosntitutes third party ownerhsip..as the compay would own the players rights...and thats not allowed in the UK. footballers have to be paye.

they may also have companies for image rights tec..but the core income from the football club has to go through PAYE or the club would be breaching the rules of the competitiom.

The idiots urging footballers to take 30 per cent pay cuts are basically syaug the footballers should get less...but for example..joe lewis, a tax esile who owns spjurs..the glaers...tax exiles in the US...abreamawhich tax exile in monaco..get more..

if the players get their full slary the its taxed and can fund things in the UK..if the players dont get it..the owners do..who mostly arent in the UK..
but the cretins who want a moral victory at any cost cant see that/..
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Spot on. There's an argument around whether the tax payer should have to fund furlough schemes for admin staff etc at football clubs with large profits and which continue to pay hundreds of grand a week to players (its better than the club simply laying them off, however). But if you think tax payer money shouldn't pay for it, then the answer is that the owners should have to pay for it. Not sure why there is such a clamour for the players to have to take pay cuts (which lower the amount of tax they pay) to cover it.

PL footballers are generally rich, but they're not in the same league as a lot of the owners. In addition they pay masses of tax where some of the owners probably own companies that (legally, unfortunately) avoid it. Footballers are just very well paid employees, it shouldn't be up to them to cover the wages of other, less well off, employees when they all play for clubs that get vast sums of TV revenue. Certainly the clubs themselves and their owners should be the first port of call.
 

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