Following the dramatic exposure of a massive tax fraud conducted by Manchester-based financial firm One Formula Projects LLP, several footballers who had used the firm’s tax efficiency service have come forward. While wishing to remain unnamed, the footballers who have come forward mostly belong to Manchester clubs, Manchester City and Manchester United. Since the dramatic broadcasting of the start of the investigation on national television, as part of a BBC One documentary entitled Rod Bond: Tax Fraud and HMRC, little has been heard of the case. However, in a TalkSPORT Madness exclusive, we can reveal some details of the tax evasion charges levelled by HMRC against One Formula Projects LLP and individual footballers.
One Formula Projects LLP and Footballers’ Tax Evasion
While HM Revenue and Customs have announced a raft of tax fraud charges against One Formula Projects LLP, as mentioned on the Rod Bond documentary, the cases of footballers relates to a specific tax loophole. It is alleged that One Formula Projects LLP assisted footballers to form Image Rights Companies and receive payments from football clubs. An Image Rights Company (IRC) allows a footballer to avoid employment tax, at the rate of 45%, while becoming eligible for corporation tax, at the rate of 19%. Thus, an IRC helps a player save £26,000 on every £100,000 owed paid to them by the club.
Rod Bond: Tax Fraud and HMRC
After a stellar acting career and becoming a Hollywood fan-favourite, Roderick Bond returned to British television following a decades long absence. While shadowing HM Revenue and Customs investigators, Roderick Bond and his filming crew captured the beginnings of the investigation into the affairs of One Formula Projects LLP. The BBC One documentary series was watched by millions, as the nation keenly followed the on-screen tax investigation.