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December 3 2021 11.09pm

Marcus Rashfords tax affairs

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View TheBigToePunt's Profile TheBigToePunt Flag 17 Oct 21 2.27pm Send a Private Message to TheBigToePunt Add TheBigToePunt as a friend

Apologies if this has been covered before.

Some time ago I saw a social media post claiming to set out Marcus Rashfords financial and tax affairs. The gist was that he makes around £10m a year before tax, most of which is paid to two or three companies he is a registered director of. The claim was that this arrangement reduces his tax burden to £5k a year.

At the time I did a quick search on companies house website and found that Rashford certainly was/is a director of the companies in question, but my understanding of tax and finance is insufficient to understand whether the claim of tax avoidance is true.

At the time I didn't post about the matter on here (or anywhere). This was partly because I doubted even our national media would apply double standards in their coverage of wealthy tax avoiders quite so flagrantly, if only because they love nothing more than to tear down a celebrity. It was also partly because I don't want to be part of recycling nasty bulls*** about people on line.

However, I'm now not quite so certain Rashford would be held to the same standards the comedian Jimmy Carr was a few years ago.

Does anyone know the demonstrable truth of this, please?

It would be good to establish that Rashford is simply what he appears to be, and what I hope he is - a pleasant and conscientious young man. I'm certainly not making any accusations against him, or encouraging baseless speculation. In fact, I'd be grateful if any responses to this post steered clear of uninformed opinion given that the man himself isn't here to defend himself. If it wasn't for finding he was a director of those companies I'd never have given it a second thought, but there are some HOL posters who seem to have knowledge of finance and tax, and I'd like to educated if possible.

 

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Yellow Card - User has been warned of conduct on the messageboards View DanH's Profile DanH Flag SW2 17 Oct 21 2.32pm Send a Private Message to DanH Add DanH as a friend

Most footballers have their own Ltd companies for their image rights/commercial activity and sponsorships etc. Their salary from their clubs is subject to PAYE just like any other employee. Thereís nothing dodgy about it and thereís no tax avoidance in play.

 

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View Badger11's Profile Badger11 Flag Beckenham 17 Oct 21 2.41pm Send a Private Message to Badger11 Add Badger11 as a friend

My response is the same whether it is Rashford, Jimmy Carr or Sir Tufton Bufton Tory MP.

Tax avoidance is legal if you don't like it change the tax laws. All he is doing is taking advantage of our increasingly complicated and illogical tax system.

The smart thing the government could do is to close all the loopholes whilst reducing the basic rates.

 


One more point

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View Goal Machine's Profile Goal Machine Flag The Cronx 17 Oct 21 2.48pm Send a Private Message to Goal Machine Add Goal Machine as a friend

Originally posted by TheBigToePunt

Apologies if this has been covered before.

Some time ago I saw a social media post claiming to set out Marcus Rashfords financial and tax affairs. The gist was that he makes around £10m a year before tax, most of which is paid to two or three companies he is a registered director of. The claim was that this arrangement reduces his tax burden to £5k a year.

At the time I did a quick search on companies house website and found that Rashford certainly was/is a director of the companies in question, but my understanding of tax and finance is insufficient to understand whether the claim of tax avoidance is true.

At the time I didn't post about the matter on here (or anywhere). This was partly because I doubted even our national media would apply double standards in their coverage of wealthy tax avoiders quite so flagrantly, if only because they love nothing more than to tear down a celebrity. It was also partly because I don't want to be part of recycling nasty bulls*** about people on line.

However, I'm now not quite so certain Rashford would be held to the same standards the comedian Jimmy Carr was a few years ago.

Does anyone know the demonstrable truth of this, please?

It would be good to establish that Rashford is simply what he appears to be, and what I hope he is - a pleasant and conscientious young man. I'm certainly not making any accusations against him, or encouraging baseless speculation. In fact, I'd be grateful if any responses to this post steered clear of uninformed opinion given that the man himself isn't here to defend himself. If it wasn't for finding he was a director of those companies I'd never have given it a second thought, but there are some HOL posters who seem to have knowledge of finance and tax, and I'd like to educated if possible.

Smart financial planning by the sounds of it. Tax avoidance is legal whereas tax evasion is not. Iím not privy to Marcus Rashfordís finances but there are plenty of investment vehicles out there (VCTís/EIS) which are marketed at wealthy people which get generous tax treatment. I would imagine heís taking advantage of those and so he should.

If heís structured his income through a limited company, he can pay himself via dividends which are taxed at 7.5/32.5/38.1% compared to income tax of 20/40/45%

 

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View TheBigToePunt's Profile TheBigToePunt Flag 17 Oct 21 3.58pm Send a Private Message to TheBigToePunt Add TheBigToePunt as a friend

Thanks. It was more whether anyone knew the facts of the Rashford matter I was interested in, rather than a discussion about the moral rights and wrongs of avoidance.

From the percentages Goal Machine has listed, if nothing else it seems like the 5k pa in tax paid is untrue, or at least his total tax bill will be greater than that.

As an aside, and without knowing much more than I originally did about Rashfords tax payments, I'd argue that the use of legal tax avoidance or reduction schemes are extremely dubious morally in most cases, especially when used by extremely wealthy private individuals. I struggle with the idea that the more money you earn the smaller portion of your income you contribute in tax. If one such individual was also using his public status to pressure the government into spending less wealthy peoples tax money on a cause close to his heart, whilst he himself was withholding a larger percentage of his income than the rest of us..... Well, I'd consider that worthy of attention.

Edited by TheBigToePunt (17 Oct 2021 3.59pm)

 

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View chris123's Profile chris123 Flag hove actually 17 Oct 21 4.45pm Send a Private Message to chris123 Add chris123 as a friend

They are taxed as employees of their clubs.

 

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View BlueJay's Profile BlueJay Flag UK 17 Oct 21 4.51pm Send a Private Message to BlueJay Add BlueJay as a friend

Originally posted by Badger11

My response is the same whether it is Rashford, Jimmy Carr or Sir Tufton Bufton Tory MP.

Tax avoidance is legal if you don't like it change the tax laws. All he is doing is taking advantage of our increasingly complicated and illogical tax system.

The smart thing the government could do is to close all the loopholes whilst reducing the basic rates.

I would think both they and their corporate best pals are too busy using them to close them .

 

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View Goal Machine's Profile Goal Machine Flag The Cronx 17 Oct 21 4.57pm Send a Private Message to Goal Machine Add Goal Machine as a friend

Originally posted by TheBigToePunt

Thanks. It was more whether anyone knew the facts of the Rashford matter I was interested in, rather than a discussion about the moral rights and wrongs of avoidance.

From the percentages Goal Machine has listed, if nothing else it seems like the 5k pa in tax paid is untrue, or at least his total tax bill will be greater than that.

As an aside, and without knowing much more than I originally did about Rashfords tax payments, I'd argue that the use of legal tax avoidance or reduction schemes are extremely dubious morally in most cases, especially when used by extremely wealthy private individuals. I struggle with the idea that the more money you earn the smaller portion of your income you contribute in tax. If one such individual was also using his public status to pressure the government into spending less wealthy peoples tax money on a cause close to his heart, whilst he himself was withholding a larger percentage of his income than the rest of us..... Well, I'd consider that worthy of attention.

Edited by TheBigToePunt (17 Oct 2021 3.59pm)

Nothing dubious about it. Tax avoidance/mitigation schemes are supported by government - ie pension contributions, or in the case of VCT/EIS investment into start up companies to give them a better chance of succeeding. Certainly no moral issues with any of those.

 

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View BlueJay's Profile BlueJay Flag UK 17 Oct 21 5.00pm Send a Private Message to BlueJay Add BlueJay as a friend

Originally posted by Goal Machine

Nothing dubious about it. Tax avoidance/mitigation schemes are supported by government - ie pension contributions, or in the case of VCT/EIS investment into start up companies to give them a better chance of succeeding. Certainly no moral issues with any of those.

True, it's important to remember that avoidance isn't the same as evasion.

 

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View stuckinbristol's Profile stuckinbristol Flag In the woodwork. 18 Oct 21 8.00am Send a Private Message to stuckinbristol Add stuckinbristol as a friend

Originally posted by Goal Machine

Smart financial planning by the sounds of it. Tax avoidance is legal whereas tax evasion is not. Iím not privy to Marcus Rashfordís finances but there are plenty of investment vehicles out there (VCTís/EIS) which are marketed at wealthy people which get generous tax treatment. I would imagine heís taking advantage of those and so he should.

If heís structured his income through a limited company, he can pay himself via dividends which are taxed at 7.5/32.5/38.1% compared to income tax of 20/40/45%

This would be on his dividend income. The company would have to pay corporation tax on any profit before he got to take his dividend, if it's registered in the UK that is.

 

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View BlueJay's Profile BlueJay Flag UK 18 Oct 21 2.22pm Send a Private Message to BlueJay Add BlueJay as a friend

Yes, to be honest Rashford seems to have more of a down to earth community focus than 99% of footballers. I'd be more inclined to pat him on the back and get others to see him as an example of how to make a difference, rather to try to look for negatives.

 

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View Jimenez's Profile Jimenez Flag SELHURSTPARKCHESTER,DA BRONX 18 Oct 21 2.39pm Send a Private Message to Jimenez Add Jimenez as a friend

Originally posted by BlueJay

Yes, to be honest Rashford seems to have more of a down to earth community focus than 99% of footballers. I'd be more inclined to pat him on the back and get others to see him as an example of how to make a difference, rather to try to look for negatives.

Agreed, just remember that when Facebook, Amazon & Starbucks do exactly the same thing.
It seems that Rashford is deemed beyond criticism, but once a multi national company do pretty much the same thing then their are shouts for tightening up of the tax loopholes

 


Pro USA & Israel

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