This briefing looks at how informed financial planning can help get fair deals for the stars and household names, whose work involves travelling across the globe and entertaining the masses. Their day to day lives are hectic and their main focus is giving the best performing they can in their chosen field. Their income can be unpredictable and is often being paid across international borders. Experts from Smith & Williamson discuss tax issues impacting on musicians & sports professionals.
Informed financial planning
Tax worries can impact sporting performance: Peter Fairchild, Partner at Smith & Williamson says UK Motor GP riders, who travel all over the globe, have been tracked down by bailiffs when racing at Donnington or Silverstone. The tax man hadn’t had receipt of tax returns. which meant they hadn’t had their taxation paid. Not having informed financial planning in place stops the riders focusing that 110% on qualifying in the race.
Sorting taxes for classical musicians: Mark Wingate, Partner at Smith & Williamson says he enjoys working with classical musicians and understand their rigorous training regimes. They can have difficulties in finding work and getting paid so they don’t spend a lot of time thinking about tax . Mark can do Informed financial planning works for them to get the tax and accounting sorted.
Making sense of musicians’ VAT deductions: According to Mark Wingate, Partner at Smith & Williamson, a musician may earn a lot less than they were anticipating if VAT deductions in their contract are not looked at properly. They can be subject to the reverse charge, where the obligation to file VAT rests with the person paying the musician. But there are also complete exemptions for some musicians in some countries, or reduced rates of VAT.
Tax Structures for people in sport and entertainment: Peter Fairchild, Partner at Smith & Williamson says that there are a lot of similarities when dealing with tax for people in sport or anyone with a high public profile. Off shore income, endorsements, sponsorship and image rights can be managed within a portable corporate structure.