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.
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.
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
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.
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