Benjamin Mendy settles tax bill with HMRC

[jimharri]

How do multi millionares go bankrupt ? I dont get it

If your income is x, and your expenditure is x+, you have a problem. And if you're not a PAYE worker, and pay your tax at the end of the tax year, and you don't have the money to pay it (see the first sentence), or have miscalculated what you owe the nice taxman, then you're on the road to bankruptcy. Some players seem to think that the (exceedingly) good times will never end, and continue to live beyond their means. Hard though that would be for the likes of you and me to fathom. How do you spend £150k (or more) a week? I could learn to scrape by on 10% of that!

 

[Corky]

He wasn't made bankrupt and still probably a millionaire.

 

[gordondaviesmoustache]

Someone who's more knowledgeable than me will be able to tell you in more details but, based on what I was taught of journalism law/legal stuff, etc. at uni, celebs often declare bankruptcy to avoid paying certain debts. It doesn't cover everything but you can be considered no longer liable for certain owed payments if you can "prove" you've not got the means. Accountants and consultants will have advised Mendy to do this, most likely.

Kerry Katona's a good example, actually - she's declared herself bankrupt about three times in 15 years and she's admitted it's often been on the advice of accountants. Same with Katie Price. They spend all their cash, panic, then get an accountant in to say all their fortunes are tied up in assets that can't be given up. Mendy's not been able to get away with it by the looks of things, with him having to sell a house to pay off the debt.

In genuine cases it's because a lot of newly rich people get loads of cash at once, get used to the lavish lifestyle, and start buying things on credit cards with huge limits with a view to paying them off later. But then something like the rape case happens to Mendy, his means of income dry up, and the people he owes debts to aren't gonna give a shit whether he was acquitted or not. He's still suing City for about £10m, isn't he?

More on it here.

Debts Included In Bankruptcy. Free Debt Advice. StepChange

Unless there’s been demonstrable associated fraud, the trustee in bankruptcy cannot touch the bankrupt’s pension. Given they are permitted to access their pension from the age of 35, it sometimes makes financial sense for a footballer who has overstretched himself to declare themselves bankrupt as they approach that age. The main unsecured creditor is nearly always the Crown.

 

[mtinadids]

Back in my HMRC days ( i was the taxman) i sent out a ton of bills to footballers for their use of tax avoidance schemes which had failed. The amounts they owed were staggering. So i imagine if they had taken poor advice and used a failed scheme they would have continued living their life of excess for a few years thinking all was fine, before suddenly a multi million pound bill landed on their doorstep. Most paid instantly to avoid the PR (Beckham), others simply couldn't afford them (Windass/Hendrie) and it sent them into serious depression suicidal moments. All this was in the media hence me naming those players. I prob cant name the others on the list unless it was mentioned in the press but some you would guess and others more surprising. Not everyone is as 'clean' as they publicly claimed.

 

[Johnny Mars Bar]

Back in my HMRC days ( i was the taxman) i sent out a ton of bills to footballers for their use of tax avoidance schemes which had failed. The amounts they owed were staggering. So i imagine if they had taken poor advice and used a failed scheme they would have continued living their life of excess for a few years thinking all was fine, before suddenly a multi million pound bill landed on their doorstep. Most paid instantly to avoid the PR (Beckham), others simply couldn't afford them (Windass/Hendrie) and it sent them into serious depression suicidal moments. All this was in the media hence me naming those players. I prob cant name the others on the list unless it was mentioned in the press but some you would guess and others more surprising. Not everyone is as 'clean' as they publicly claimed.

Let me guess, Joey Barton and Matt le Tissier never paid because it’s a global conspiracy by the illluminati and the great reset and…something something vaccines George Soros?

 

[jacko74]

How do multi millionares go bankrupt ? I dont get it

The vast majority of wealthy people who declare bankruptcy are no where near actually being genuinely bankrupt, for them its just a tool used to get out of your debts once you've sufficiently got your finances and assets in a position where they can't be touched.

 

[jimharri]

Back in my HMRC days ( i was the taxman) i sent out a ton of bills to footballers for their use of tax avoidance schemes which had failed. The amounts they owed were staggering. So i imagine if they had taken poor advice and used a failed scheme they would have continued living their life of excess for a few years thinking all was fine, before suddenly a multi million pound bill landed on their doorstep. Most paid instantly to avoid the PR (Beckham), others simply couldn't afford them (Windass/Hendrie) and it sent them into serious depression suicidal moments. All this was in the media hence me naming those players. I prob cant name the others on the list unless it was mentioned in the press but some you would guess and others more surprising. Not everyone is as 'clean' as they publicly claimed.

Where did I leave that ban button?

 

[Jazzyblue]

Easy to judge but there's a ton of people out there who will be in receipt of income from interest, shares, casual online sales and property and not realise they are liable for tax. Post-Covid, HMRC is cracking down - because so much public money was funnelled to the rich and the companies they invest in - clawing back the bill from the working taxpayer, the younger taxpayer, and those who find themselves in the public eye, like Mendy. I doubt Mendy set out to evade anything - just a young guy who hasn't been properly advised - but once he had legal troubles HMRC started digging. Look at Luke Littler - he had barely had his celebratory kebab before they started breathing down his neck.

 

[jimharri]

The vast majority of wealthy people who declare bankruptcy are no where near actually being genuinely bankrupt, for them its just a tool used to get out of your debts once you've sufficiently got your finances and assets in a position where they can't be touched.

Agreed. The example I talked about earlier was referring to people who actually have gone bankrupt, and not just pulling a fast one to dodge paying debts.

 

[mtinadids]

Easy to judge but there's a ton of people out there who will be in receipt of income from interest, shares, casual online sales and property and not realise they are liable for tax. Post-Covid, HMRC is cracking down - because so much public money was funnelled to the rich and the companies they invest in - clawing back the bill from the working taxpayer, the younger taxpayer, and those who find themselves in the public eye for the wrong reasons, like Mendy. I doubt Mendy set out to evade anything - just a young guy who hasn't been properly advised - but once he had legal troubles HMRC started digging. Look at Luke Littler - he had barely had his celebratory kebab before they started breathing down his neck.

Id agree in that its not unreasonable to assume a young footballer would just hand over all accounting to his accountant...many of whom got backhanders from the avoidance scheme promoter. It was quite clear from the list i had that someone had done a tour of certain football clubs as about 90% of the squad were all signed up to the same scheme. I can see the majority of players failing to understand the complexity of the scheme other than asking "is it legal?" (they are) and plodding ahead. A few however...older pundits, presenters, id have to think probably had more of an idea that only paying 10% tax after routing your salary through Bermuda was never going to go down stunningly well with the tax man.