Sunday, February 8, 2009

Tax Issues

Before embarking on a search for sponsorship, athletes should be aware of the potential tax implications. Any income directly derived through personal sponsorship could adversely affect the tax-free Athlete Personal Award (APA) that they receive from UK Sport.
For example, an athlete awarded a £20,000 APA who then receives an additional £3000 of personal sponsorship funds could be taxed on the ENTIRE sum and end up losing money.

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