I wish I had Beckham's Tax Advisor !!
I wish I had Beckham's Tax Advisor !!
Author
Discussion

srebbe64

Original Poster:

13,021 posts

267 months

Thursday 1st December 2005
quotequote all
On £17m pa he pays just £3m in Tax. How does that work then?

www.sky.com/skynews/article/0,,30000-13472801,00.html

scorp

8,783 posts

259 months

Thursday 1st December 2005
quotequote all
Does he get paid in spain? (e.g. paying spanish tax levels)

>> Edited by scorp on Thursday 1st December 16:47

dazren

22,612 posts

291 months

Thursday 1st December 2005
quotequote all
Not sure if it still works but in the UK, professional footballers used to have a dispensation from the IR allowing them to put a far higher percentage of earnings into their pension than than normal workers. They also had the ability to draw the pension from 35 years old.

Although in Beckham Trading Ltd's case I'm sure there will be some creative expenses to cover his costs of running homes/staff in different countries etc.

DAZ

>> Edited by dazren on Thursday 1st December 16:50

TheLemming

4,319 posts

295 months

Thursday 1st December 2005
quotequote all
I remember back when my Dad and some friends of his were IT contracters in the 90's boom, they were earning 5 times my salary or more and paying less tax than I was.

All above board, but the costs involved made it impractical to implement if you were earning more normal salaries.

If I had several full-time tax advisors / accountants like Beckam, I'm pretty sure I could cut my tax bill massively. But I would also have to pay their bills!

vodkakid

1,076 posts

302 months

Thursday 1st December 2005
quotequote all
This doesnt inclued his football earnings its just his business income

Pickled Piper

6,452 posts

265 months

Thursday 1st December 2005
quotequote all
srebbe64 said:
On £17m pa he pays just £3m in Tax. How does that work then?

www.sky.com/skynews/article/0,,30000-13472801,00.html



Well firstly he doesn't get paid as an employee but as "David Beckham Ltd" also his promotions and advertising earnings will be paid into other similar companies. He may also be paid "off shore". There are lots of ways to avoid tax if you have the money!

pp

gasblaster

27,584 posts

309 months

Thursday 1st December 2005
quotequote all
This is how it can work: wages are taxed in the country of residence....but.......half the 'wages' might be classed as 'image rights' and these can be paid into a separate, possibly offshore, jurisdiction. As for promotion income, this is probably generated by a corporate entity, not by DB personally, so taxed where that entity is based. I used to deal with a few pro footballers offshore finances and this is the sort of stuff that can be done. Alright for some, hey?

HarryW

16,041 posts

299 months

Thursday 1st December 2005
quotequote all
I'd settle for his wages first, then worry about which Tax advisor to employ later .

H

Eric Mc

125,754 posts

295 months

Thursday 1st December 2005
quotequote all
He shouldn't pay UK tax unless he is resident in the UK. My hunch is that Beckham and his various companies are resident offshore in places like the Carribean. He wouldn't want to be resident in Spain as Spain has higher tax levels than the UK.

catso

16,502 posts

297 months

Thursday 1st December 2005
quotequote all
I wish I was Beckham's Tax advisor, would imagine he's not short of a few quid either....

alfaman

6,416 posts

264 months

Thursday 1st December 2005
quotequote all
I suspect most of the £17m is paid to an offshore based "Beckham PLC" for services rendered by DB, he then draws a much smaller £ salary or divi from the company - and puts a lot into a pension .

staceyb

7,107 posts

254 months

Thursday 1st December 2005
quotequote all
Do you think if I asked him for 1 days worth of his wages he would give it too me? I mean its not like he would miss it.