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HMRC internal manual

Business Income Manual

Athletes: Timing of Income

The time at which an athlete’s taxable income should be taxed depends on whether the individual is considered to be carrying on a trade or a hobby, see BIM50605. For details of the types of income which the athlete might receive, see BIM50610.

If the athlete is trading, deciding when to include the income as a trading receipt will involve consideration of the relevant agreements and all the surrounding circumstances in order to apply the correct accounting treatment (see BIM31080).

If the athlete is not trading and the income is taxable under S688 Income Tax (Trading and Other Income) Act 2005 (see BIM50606), the amount taxed is the amount arising in the tax year.