Professional Golfers on Tour Taxable Income
Tour Professionals get income from a number of sources including Prize Money- Appearance Bonus - Incentive payments Results based Bonus - Endorsements Clubs - Other Equipment - Clothing Cars - Holidays - Other Goods in Lieu of Cash All of the above are taxable and the calculation of the amount to include will be will be subject to a number of different rules. Where the value is in currency it is straightforward but where the value is for goods a calculation will need to be done.
The Inland Revenue will accept a just and reasonable calculation as to the Value to be included in the accounts. Where a player receives Clubs from a manufacturer the value should be brought in as income in the year of receipt. If the clubs are retained at the end of the year Capital Allowances should be claimed until the clubs are disposed of. If the clubs are returned then the cost can be claimed in full. Clothing, Shirts Trousers Sweaters etc has a duality of purpose and therefore should be included as taxable income. Golf Shoes do not have another use and therefore can be ommitted from the calculations. Other assets for his/her personal use such as a car then a calculation of the value transferred miust be used A car could be valued at the start of the use by the professional and again at the end of the use. The reduction of value would be spread over the various tax years and that would be included in the professionals income for each of the years. Property and Holidays and use of other assets etc would all be calculated using an appropriate and reasonable basis.
Expenses
The basic rules for self employed people apply to Professional Tour Players and to qualify for deduction must be wholly and exclusively for the purpose of the trade. In practice reasonable hotel costs and travel expenses will be allowed but receipts should be kept at all times.
Caddy Fees
Caddies are self employed and the Professional should obtain an invoice from his caddy for services. When a local caddy is used the professional should obtain a receipt. If this is not forthcoming then use a self billing invoice obtainable from the office of Andrews Orme & Hinton Ltd. Tax
Deduction Vouchers
When you win abroad there is a foreign tax deducted from the cheque from the PGA keep these as they can be used towards settlement of your UK tax and N.I. liability. When too much foreign tax is deducted repayment must be pursued in the foreign country and you may need to retain a local accountant to do this. We have contacts in many countries where the European Tour is played and we can help you.
Scott Drummond
Information Courtesy PGA European Tour
European Tour: Category: 2 Rank: 1
Attachment: N/A
Country: Scotland
Born: 29 May 1974
Residence: Yelverton, England
Player Profile
Started the week of the 2004 Volvo PGA Championship in 396th position on the Official World Golf Ranking and finished it in 95th and E625,000 richer after claiming his first victory on The European Tour. Celebrated his 30th birthday with a second round 71 at Wentworth Club, going on to equal the tournament record of 269, 19 under par, just four weeks after the birth of his first child, Keira. His career is somewhat parallel to that of Sandy Lyle. Both come from Shropshire, both played amateur golf for England and both took Scottish nationality from their father when they turned professional. Joined the paid ranks in 1996, having been an international at boys, youth and senior levels. Was not an easy transition initially, although he played the Challenge Tour in 2000, finishing ranked 57th. Claimed his second Challenge Tour victory, after his Open des Volcans success of 2001, with a play-off win in the Open de Toulouse in October 2003 en route to finishing seventh on the 2003 Rankings.
Personal Information
Family: Wife: Claire (m.2001); Child: Keira (2004)
Interests: Cars, bodyboarding, music
Carl Watts
Attachment: Telford
Country: England
Born: 22 Aug 1971
Residence: Telford, Shropshire
Player Profile
Information Courtesy PGA European Tour
One title Carl will always treasure is that of Russian Open champion. He played in the inaugural event last year at the Moscow Country Club on a course which was highly praised all round. He also has happy memories of the Rolex Trophy Pro-Am a few weeks earlier, even though he lost the title to Dennis Edlund in a play-off. 'I shot a course record 63 in the last round and the sponsors presented me with a Rolex watch, which was lovely,' said Carl, who turned professional in 1993 after a distinguished amateur career for England. The former British Boys' champion won the pre-qualifying for the 1993 European Tour Qualifying School Finals but did not progress further, and nor did he in 1994. 'I didn't even try to pre-qualify in 1995 because I knew I wasn't ready,' said Carl. 'I knew I would be better playing for another year on the European Challenge Tour and it proved to be the right decision. I learned how to win and it prepared me for life on the European Tour.'
Carl now operates a European Tour Boot camp to train young professional golfers for life on Tour.
Personal Information
Family: Wife: Jacquie Child: Cameron (2002)
Interests: Fishing, movies, fitness