Taxing Footballers

[FredPuli43]

Theo Walcott has reportedly signed a contract for £ 100,000 a week and a signing on fee of several million. The weekly wage presumably attracts the top rate of tax on most of it. What does the signing on fee attract? There must be some means of reducing exposure to tax on these sums. What? For one thing, a footballer will retire from playing by the time he is forty. Does he get tax relief on pension payments and get allowed to claim his pension at that early age?

[factor-fiction]

The Lifetime Allowance (cap on contributions) must apply to footballers so I can't see pensions being used as the main tax avoidance technique here.
I think footballers do get an early pension- I'd have to look it up but I recall players in the past could take it at around 35-40 (based on their contributions).
Maybe tax is being paid on all their income but I suspected in most cases it goes to an off shore trust/limited company. I recall that the tax avoidance scheme being used by Jimmy Carr was similar to one used by footballers

[buildersmate]

Professional footballers are allowed by HMRC to start taking their pension at age 35, Fred.
No idea how signing-on fees operate, tax-wise.

[Skyline D]

Signing on fees are normally taxed in the same way any other bonus from employment is. It forms part of taxable pay in the period in which it is paid.

I don't know what avoidance schemes may exist at the top end of the game though. Employee Benefit Trusts, etc might be in use at that level. My experience in football is all at a fairly low professional level.