Yes, if you earn income through sponsorships, endorsements, prize winnings, or self-employed work, you must register for Self-Assessment and file a tax return with HMRC. This ensures you declare all taxable income, including payments outside a traditional salary.

You can claim expenses that are wholly and exclusively for your profession. This includes: Training costs (e.g., gym fees, coaching) Travel and accommodation for competitions or training Sporting equipment, kit, and physiotherapy

Income earned overseas is still subject to UK tax if you are a UK resident. You may also need to declare and pay taxes in the country where it was earned, but the UK has double taxation agreements with many countries to avoid being taxed twice. An accountant can help ensure you claim foreign tax credits correctly.

If you are registered to complete a Self Assessment and you miss the 31 January deadline, HMRC issues an automatic £100 penalty. After 3 months, daily penalties may apply, and after 6 months, further fines are charged. It's essential to file on time, even if you cannot pay immediately, to avoid additional penalties. If you have not registered for Self-Assessment but realise you need to file a return, you can go back up to 4 tax years to declare any undeclared income or correct your tax position. For example, if you realise in the 2024/25 tax year that you should have filed a return for previous years, you can still submit returns going back to 2020/21. It’s important to act quickly to avoid penalties and interest on unpaid tax. At Practical Business Solutions, we can help you get registered, prepare your returns, and ensure you’re compliant with HMRC requirements. If you’re unsure whether you need to file, contact us today for tailored advice.

You must keep records of all income, expenses, invoices, receipts, contracts, and bank statements. Digital tools like Xero and Hubdoc, which we use, can simplify this. HMRC requires you to keep financial records for at least 5 years after the 31 January submission deadline.

HMRC will randomly audit individuals and businesses to ensure compliance. This is picked totally at random and can happen at any time. This means that a significant amount of time is needed by us to provide the information that they require. But with our insurance policy, our time and subsequent fees are covered, meaning the stress is taken away from you.

Yes it is advisable to set aside some money for any income which you have not already paid taxes on. As a rule of thumb, set aside 20-30% of your income to cover tax and National Insurance. This ensures you have enough to meet your obligations when filing your return. However, this is based on the level of earnings. We can work with you to understand the optimum amount to save to ensure you are prepared.

Yes, winnings are taxable if they form part of your professional income. However, incidental or non-regular winnings may not be taxable. We can help you determine the treatment of specific income.

UK residents must declare worldwide income, including earnings from overseas. Double taxation agreements may apply, which means you won’t pay tax twice. We’ll help you navigate this process.

All income must be reported in GBP. We can assist with accurate currency conversion and ensure HMRC requirements are met.

That's what we're here for. We have seen plenty of cases where overseas players finances are not handled correctly and efficiently and eventually receive nasty surprises in the form of unwanted but avoidable tax bills. We are here to provide practical advice to ensure you are made aware of the specific tax implications to sportspeople in the UK and can create a tax efficient vehicle.

We’ll help you build a secure financial future through pension planning, investments, and savings strategies tailored to your long-term goals. This is not a one-size-fits-all. Every situation is different. Get in touch to find out how we can help.

Investments that we would suggest would depend on your goals for the future, along with your appetite for risk. We’ll guide you on tax-efficient investments like ISAs, property, pensions, and diversified portfolios to ensure your earnings work for you long after your career ends.

Sponsorship and endorsement income is taxable and must be declared on your Self-Assessment. Expenses directly related to fulfilling these agreements can often be claimed.

It’s beneficial to set up a pension early, as contributions are tax-deductible, and the earlier you start, the more time your savings have to grow. Pensions can also help reduce your overall tax liability, whilst saving for your future.

Yes. Pension contributions benefit from tax relief up to your annual allowance (£60,000 in most cases). Additionally, Individual Savings Accounts (ISAs) and investment portfolios offer tax-efficient savings.

We recommend allocating a portion of large payments to tax, investments, or pensions. An accountant can help structure this income to reduce tax liabilities and plan for long-term financial security.