FA target agents as strict new rules mean they must declare ALL payments from players – while some companies fear tax probes for historic transfer deals
- Football agents will now have to declare how much they earn from players
- The FA’s strict new rules will see them complete an annual report of payments
- Some companies could be targeted by tax enforcement for historic transfers
Agents must declare how much they earn from players in strict new compliance laws introduced by the Football Association.
All FA-affiliated intermediaries are required to complete an annual report detailing all payments made to them by, or on behalf of, players during a 12-month period. Forms have been sent directly to agents, who must submit them to their clients. The FA can then request the records whenever they want.
Agents were informed of the regulation changes earlier this year. The original deadline for the completion of documents was July 30. However, due to the impact of the Covid pandemic, a new deadline of October 31 was set.
Football agents must declare how much they earn from players as part of strict new rules
The forms require representatives to detail how much a player has paid them directly, what clubs have paid them on behalf of their clients and what fees they have received from other deals — including image rights and commercial and sponsorship contracts.
The new practice is viewed as a proactive step from the FA to try to improve financial transparency. The governing body believe it will help understand the transactions between agents and their clients and help players keep track of how much tax they have to pay.
The rules will also provide players with an extra layer of protection against contentious payments because the forms will document how much they have been paid and for what.
The rules are viewed as a proactive step from the FA to try to improve financial transparency
Agents’ fees for transfers and renegotiations generally range between five and 10 per cent.
Meanwhile, agents and management firms across the country are growing increasingly anxious about being targeted by HMRC following the crippling impact coronavirus has had on the UK economy.
A number of companies could be targeted by tax enforcement probes for historic transfers deals and some are considering taking legal advice ahead of any HMRC investigations.