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The Goon Thread

glasgowspur said:
So they get to look good without it actually costing them anything?
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Of course it costs them something. They just don't pay tax on that portion of their income. Assuming they are all 45% payers then a £1 million donation costs them £1million but reduces their tax bill by £450k*.

* I'm no tax expert, deductions may be capped at the 20% basic tax rate in which case they only reduce their tax bill by £200k
 
Finney Is Back said:
Of course it costs them something. They just don't pay tax on that portion of their income. Assuming they are all 45% payers then a £1 million donation costs them £1million but reduces their tax bill by £450k*.

* I'm no tax expert, deductions may be capped at the 20% basic tax rate in which case they only reduce their tax bill by £200k
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As I understand it, and I could well be wrong, it's possible they can make the donation not from their salary but from profits of any company they own and avoid tax that way.
 
Finney Is Back said:
Of course it costs them something. They just don't pay tax on that portion of their income. Assuming they are all 45% payers then a £1 million donation costs them £1million but reduces their tax bill by £450k*.

* I'm no tax expert, deductions may be capped at the 20% basic tax rate in which case they only reduce their tax bill by £200k
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Not sure how tax works in the UK, but that doesn't seem right. Most places tax deductions just lowers your taxable income. In Norway it would work out like this.
If your income is 1 million , and you give 100k to charity, your taxable income would be 900k and if the tax rate is say 20%, you'd pay 180k instead of 200k.
 
Kandi1977 said:
Not sure how tax works in the UK, but that doesn't seem right. Most places tax deductions just lowers your taxable income. In Norway it would work out like this.
If your income is 1 million , and you give 100k to charity, your taxable income would be 900k and if the tax rate is say 20%, you'd pay 180k instead of 200k.
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That's exactly the same as what I said above just with a different amount/tax rate.
 
glasgowspur said:
As I understand it, and I could well be wrong, it's possible they can make the donation not from their salary but from profits of any company they own and avoid tax that way.
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It's the same thing though. Whatever donation you make you don't pay tax on. That could be via a company or a personal donation, I suspect the only difference here is that the tax relief rate would be based on corporate tax rates for one and income tax rates for the other.
 
Finney Is Back said:
Of course it costs them something. They just don't pay tax on that portion of their income. Assuming they are all 45% payers then a £1 million donation costs them £1million but reduces their tax bill by £450k*.

* I'm no tax expert, deductions may be capped at the 20% basic tax rate in which case they only reduce their tax bill by £200k
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Your initial statement was correct, the donation is treated as a reduction in earnings, so come out of the highest rate a taxpayer pays.
 
glasgowspur said:
As I understand it, and I could well be wrong, it's possible they can make the donation not from their salary but from profits of any company they own and avoid tax that way.
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They all pay a far higher tax rate on their salaries than on their companies, so that wouldn't make sense.

Usually a fairly small chunk of a player's earnings will be salary - this is paid and taxed in the UK, almost entirely at 45%. The rest of their earnings will be for image rights, etc which are held by either a trust or a corporation, owned by the player and registered in a tax haven. This will not be taxed bit will be subject to a few % of costs that would not be there for their salary - as far as the player's concerned this may as well be a tax but it's low.

So they really want to make the charitable donations (preferably through the club as a salary sacrifice as it reduces the burden of proof on the player) on their salary as they will only ever pay 55% of any donation
 
scaramanga said:
They all pay a far higher tax rate on their salaries than on their companies, so that wouldn't make sense.

Usually a fairly small chunk of a player's earnings will be salary - this is paid and taxed in the UK, almost entirely at 45%. The rest of their earnings will be for image rights, etc which are held by either a trust or a corporation, owned by the player and registered in a tax haven. This will not be taxed bit will be subject to a few % of costs that would not be there for their salary - as far as the player's concerned this may as well be a tax but it's low.

So they really want to make the charitable donations (preferably through the club as a salary sacrifice as it reduces the burden of proof on the player) on their salary as they will only ever pay 55% of any donation
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It was Arsenal who started this sort of thing in the UK. The IR did end up getting involved and stopping the practice of a majority of the payments being in 'image rights' (Arsenal were channelling the lions share of their player paymebts through these.... I think they even set up a seperate offshore company to pay and that company then distributed the payments to the players). There are now some guidelines around this, if I remember I'll ask the old man about the percentages next time I chat to him.
 
Finney Is Back said:
It was Arsenal who started this sort of thing in the UK. The IR did end up getting involved and stopping the practice of a majority of the payments being in 'image rights' (Arsenal were channelling the lions share of their player paymebts through these.... I think they even set up a seperate offshore company to pay and that company then distributed the payments to the players). There are now some guidelines around this, if I remember I'll ask the old man about the percentages next time I chat to him.
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What really made me laugh was when a certain manager who will not be named convinced all the players at Portsmouth to do it. They were getting 90%+ of their salaries in image rights and nobody had ever heard of them!
 
scaramanga said:
What really made me laugh was when a certain manager who will not be named convinced all the players at Portsmouth to do it. They were getting 90%+ of their salaries in image rights and nobody had ever heard of them!
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I think it was Donkey Adams who got Harry and the Pompey directors on to it.
 
Arsenal have pulled out of contract talks with striker Pierre-Emerick Aubameyang.
The 30-year-old Gabon international is linked with a move away from Emirates Stadium, with Manchester United, Inter Milan, Barcelona, Real Madrid and Chelsea all interested in signing him
 
markysimmo said:
Arsenal have pulled out of contract talks with striker Pierre-Emerick Aubameyang.
The 30-year-old Gabon international is linked with a move away from Emirates Stadium, with Manchester United, Inter Milan, Barcelona, Real Madrid and Chelsea all interested in signing him
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... according to his agent
 
markysimmo said:
Arsenal have pulled out of contract talks with striker Pierre-Emerick Aubameyang.
The 30-year-old Gabon international is linked with a move away from Emirates Stadium, with Manchester United, Inter Milan, Barcelona, Real Madrid and Chelsea all interested in signing him
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Would be a good signing for Man Utd..... They wouldn't be too far away from a title challenging team again with him playing up top for them. I'm hoping he stays for one more year at Arsenal though.
 
Arsenal may be forced to sell six players to fund the remainder of 24-year-old Ivory Coast winger Nicolas Pepe’s £72m fee for his move from Lille last summer
 
markysimmo said:
Arsenal may be forced to sell six players to fund the remainder of 24-year-old Ivory Coast winger Nicolas Pepe’s £72m fee for his move from Lille last summer
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Funny if true, although I thought they only went for him instead of paying a lump sum fee upfront for Zaha because they were able to negotiate paying all different installments based on performance and appearances etc. If they still had to pay more than for Zaha (just a summer later) then they have made a serious fudge up!
 
dingdongo said:
Funny if true, although I thought they only went for him instead of paying a lump sum fee upfront for Zaha because they were able to negotiate paying all different installments based on performance and appearances etc. If they still had to pay more than for Zaha (just a summer later) then they have made a serious fudge up!
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Their also due to pay for the CB they brought and left on loan
Could easily have been a bugger all up front deal but loads after year 1 when they anticipated more money coming in
 
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