Cricket stars face £50,000 tax bill over free tickets - News - Evening Standard
       

Cricket stars face £50,000 tax bill over free tickets

For years England's cricket stars have been handed complimentary tickets to give their friends and families.

But now the taxman has them in his sights.

Andrew Flintoff, Monty Panesar, Steve Harmison and the rest of the squad are furious that they could be forced to pay up to £50,000 in backdated tax on the tickets.

More news...

• After 88 years, golf club finally lifts its ban on Germans

The Inland Revenue is pressing for the complimentary tickets to be classed as 'benefits in kind' and so liable to tax at 40 per cent.

It is understood to be demanding payment backdated over several years.

Players selected for England have enjoyed an entitlement to four tickets for the first four days of a Test, plus four for each one-day international, including hospitality packages comprising lunch and tea with a commercial value of around £600 a day.

With seven Tests per home season and ten one-day internationals, a player picked for all England's home matches could receive 38 days of tickets and hospitality packages at a total value of £22,800 - and therefore possibly be liable to pay £9,120.

The players have been angered and bewildered by the unexpected demand which, ironically, they received in a letter along with allocation of tickets for the current first Test against West Indies at Lord's.

They have asked the Professional Cricketers' Association to take up the matter with the cricket board and the taxman.

Meanwhile, testimonial matches for top England rugby players are also under investigation by the taxman.

Revenue officials have written to the 12 Premiership clubs, asking for details of benefit events they have organised in recent years.

Four of England's World Cup winners, <\<>Martin Johnson, Phil Vickery, Lawrence Dallaglio and Neil Back, have been honoured in this way. Although there is no suggestion these players are being targeted, tax inspectors are understood to be keen to destroy the misconception that proceeds from lucrative testimonial seasons and black-tie dinners are tax-free.

Dallaglio is thought to have made more than £1million from matches in his honour. He gave some to charities, including a fund for injured players.

To avoid a hefty tax bill, players have to show the benefit event was an unsolicited gift. Revenue and Customs said: "Testimonials are not "tax-free" as is commonly reported. There is no question of removing tax exemption."

Comments

Don't Miss
Gala night for the Queen of arts - stars turn out in their hundreds to pay tribute

Happy & glorious

Stars turn out in their hundreds to pay tribute to Queen
Prints charming: patterned trousers for summer

Prints charming

Patterned trousers for summer
Promethipedia: the lowdown on Ridley Scott's new blockbuster Prometheus

Promethipedia

The lowdown on Ridley Scott's new blockbuster Prometheus
The Middletan: Kate Middleton has the most requested tan in London

The Middletan

Kate Middleton has the most requested tan in London
Amy Childs bares all like Britney

Dare to bare

Amy Childs vajazzles like Britney
Thais go Gaga: singer’s ‘fake rolex’ tweet sparks new tour row... but fans still mob her at airport

Thais go Gaga

Singer mobbed at airport
Trip the bright fantastic - in vertiginous neon

Fashion

Trip the bright fantastic - in vertiginous neon
Chelsea Champions League celebrations - in pictures

Victory parade

Chelsea Champions League celebrations
High-flying heroes

High flying heroes

David Oyelowo reveals all about new film Red Tails
The Twitter Diaries: Think Bridget Jones tries social networking

The Twitter Diaries

Think Bridget Jones tries social networking