Competing in major tournaments is the pinnacle of a sports person’s career, a chance to showcase their talent on the national or international stage. Whether it’s Wimbledon, the Olympics or the Euros, these events come with not just glory but also financial considerations. Luckily, tax law allows athletes to claim a range of expenses incurred during tournaments, both domestic and international.
Unlike salaried employees, athletes competing in major tournaments are generally considered self-employed for tax purposes. This means they are responsible for paying income tax on their prize money and appearance fees. However, the good news is that tournament-related expenses can offset this tax burden.
- Flights, trains, and mileage: Costs associated with travel directly to and from the tournament, domestic or international, are claimable.
- Accommodation: Hotels or apartments booked specifically for the competition are deductible expenses. Remember, this doesn’t include leisure trips before or after the event.
- Coaching fees: Fees paid to coaches, trainers, and nutritionists specifically for tournament preparation can be claimed.
- Equipment maintenance and repair: The costs of maintaining and repairing equipment used during the tournament are claimable.
- Competition kit: Specialised clothing and footwear worn solely for the tournament are deductible expenses, if your national association or team won’t pay for them.
There’s also a range of tournament specific expenses you can claim
If you have to pay entry fees for a tournament, that’s deductible, as is physiotherapy and sports massage treatments received to maintain peak physical condition during the tournament are claimable.
If the event is overseas, then fees associated with obtaining a visa to compete abroad are claimable as is travel insurance specifically covering the tournament period, and any foreign language translation necessary for communication during the tournament, these costs can be claimed.
The tax opportunities don’t start when the first match is played – costs associated with pre-tournament training camps can be deducted, provided they are solely for tournament preparation.
As ever, keeping a good record of all transaction is vital. If you can’t show it, you can’t claim it. So hold onto receipts for everything you claim, from travel tickets to physiotherapy sessions, track your mileage and log your receipts by category (travel, equipment, training, etc.) for easy reference.
Even with all the receipts you can muster, navigating tax regulations, especially with an international tournament schedule, can be complex. We work a lot with sports people and it’s a landscape we know very well. So get in touch and let’s see how we can take the financial headaches off your hands so that you can concentrate on landing those trophies.
