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HMRC internal manual

Business Income Manual

From
HM Revenue & Customs
Updated
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Athletes: Service companies

Some leading athletes have their own companies, which are often described as sports consultancies, providing the services of the athletes.

Where the contracts have been made between the sponsor and the service company the income will be taxable on the company. However, where the contracts have been made between the sponsor and the athlete the income will be taxable on the individual (not the company), even if the company is entitled to receive the income (for example, because the service agreements says that the athlete must hand over the money).

You should consider whether the rules on service companies and other intermediaries apply when reviewing such companies. See the Employment Status Manual (ESM3000 onwards) for more details.