15/03/2023tax , Tax Issues , Tax Saving Tips , Taxation
Although this is quite possible that these famous athletes can have many opponents for the fame they have earned from their field. This is all because of the HMRC’s austere tax laws that are not sparing the struggle of tax even if this is about celebrities or famous athletes. Sometimes this becomes hard to believe that even the fastest athletes and the several-time gold medalist alive in the UK can have opponents like HMRC. This brings up queries in the mind of common people in the UK regarding how athletes’ tax in the UK is implemented, what is the relation of the double tax treaty in this regard, and whether there is any positive result of this feud. Realising the need based on the frequently asked questions, we have compiled this comprehensive guide that will help you to gather information about all the possible basics.
Talk to one of our intelligent and clever professionals to get your further queries about athletes’ tax in the UK. We will ensure to come up with the best possible solution.
Athletes Versus Tax Laws
There are cases observed in relation to tax implementation by HMRC and the resistance of athletes to HMRC in the UK. This normally has nothing to do with any physical opponents. Because mostly these cases belong to the sprinters. In the year 2010, an athlete decided to compete in Paris rather than focusing on the fulfilment of Aviva London Grand Prix commitment. And here it was considered a way of ditching the rules. Later an athletic event took place in London and the athlete also declined the invitation to be involved with the event happenings. After they were questioned, it was told that the tax involved in the activity was expected to be more than the appearance fee which made them decline the invitation.
This is also because of the fact that the appearance in the event will end up giving a big chunk of the figure £100,000 to be given to HMRC, which will be of no benefit to the athletes. So the management team decided to drop the idea as it was not worth it and there was no financial benefit involved in the appearance.
Are Athletes Taxed in the UK – What is the Procedure?
Yes — all income earned in the UK is subject to UK tax, whether you’re a UK resident or a visiting athlete.
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UK residents pay income tax on their worldwide income, including salaries, sponsorships, and prize winnings.
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Non-resident athletes are taxed on UK-source income, including:
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Event appearance fees
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UK prize money
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A portion of sponsorship or endorsement deals linked to UK appearances
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Examples of Taxable Athlete Income in the UK
| Type of Income | Taxable in the UK? | Who Pays? |
|---|---|---|
| Prize money from UK competitions | ✅ Yes | UK & non-UK athletes |
| UK appearance fees | ✅ Yes | UK & non-UK athletes |
| Endorsements linked to UK activity | ✅ Partially | Non-UK athletes (based on apportionment) |
| Overseas rental income (for UK residents) | ✅ Yes | UK residents only |
How Does this Making Sense that Athletes are being Taxed?
According to HMRC, this makes sense because the earnings possible worldwide can be linked to an event that is taking place in the UK. This makes it the subject of UK tax. The number of days will be divided into the tax bills of such athletes who compete in the UK and in other countries as well. If you see the great book of arithmetic, this concept will be considered as HMRC Maths. In the year 2012, it was announced that the practice days of the athletes would also be considered and taxed in the UK. This explains that if the athletes arrive in the UK a few days before the game for the sake of practice, they will be taxed on these days of practice as well.
Double Tax Treaties: Are Athletes Taxed Twice?
The UK has Double Tax Treaties (DTTs) with many countries to prevent income from being taxed twice. These agreements usually allow you to claim foreign tax credits or exemptions, but:
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They don’t always prevent UK tax on sponsorship income tied to UK activity.
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Athletes may still pay some UK tax, then reclaim tax relief in their home country depending on the treaty.
That’s why understanding the specific treaty terms between the UK and your country of residence is crucial.
Why Do Some Athletes Avoid UK Events?
In the past, high-profile athletes like sprinters and tennis players declined UK event invitations, citing unfavourable tax rules. For example:
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If the tax on UK income exceeded the appearance fee, athletes would simply decline to participate.
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In 2012, the UK temporarily lifted some tax rules for the London Olympics to encourage international participation — but this was a one-off exception.
As of 2025, these tax rules remain in force. Athletes competing or training in the UK should plan accordingly.
How Can Athletes Manage UK Tax Efficiently?
Here are key tips for managing your tax obligations:
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Track your UK presence — days spent in the UK (even for training) matter.
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Separate global and UK-linked sponsorships where possible.
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Use DTTs wisely — claim credits where permitted.
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Hire a specialist tax advisor experienced in cross-border athlete taxation.
The Bottom Line
Now that you have gathered a fair amount of information about athlete’s tax in the UK, we can bring the discussion towards wrapping up. This is quite surprising for many people that athletes are being taxed in the UK. However, there were several issues observed in the past that went against the strictness of the tax law. But to date, the rules remained the same and the athletes are being taxed in the same manner after all the journey and struggle to call it off in the UK. So it is better to be aware of the facts and requirements about the tax implications if you are an athlete and playing in the UK.
If you seek professional help to learn more about athlete’s tax in the UK, why wander somewhere else when you have our young and clever team of professionals at CruseBurke?
Disclaimer: All the information provided in this article on how athletes are taxed in the UK includes all the texts and graphics. It does not intend to disregard any of the professional advice.