In Hull City AFC (Tigers) Limited v HMRC [2019] TC7074 the FTT decided that payments made to Geovanni Gomez’s offshore company under an image rights contract were employment income and not consideration for the licensing the footballer’s image rights.

HMRC claimed that this sum was earnings of Geovanni and issued Directions under Regulation 80 Income Tax (Pay as You Earn) Regulations 2003 and Decisions under Section 8 Social Security Contributions (Transfer of Functions) Act 1999 for tax years 2008-09, 2009-10 and 2010-11.

On appeal to the First Tier Tribunal, Geovanni argued that the payments were not earnings.

The FTT found that:

The Club viewed the sums payable under the Playing Contract and the Image Rights Agreement as an overall package. In reality payments to Joniere were a reward for Geovanni’s services as a footballer and formed part of his earnings.

Useful tax guides

Image Rights & Tax
Following developments in the taxation of image rights. 

Golden handshakes and unusual payments
A handy tracker of cases where an employee may receive a payment or fee that is not described or treated as remuneration.

External links

Hull City AFC (Tigers) Limited v HMRC [2019] TC7074