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Don’t be an easy target for HMRC in 2019

Get insured against the costs of a tax investigation by HMRC

We are seeing more and more professional services firms – and their clients being investigated by HMRC for tax evasion. HMRC issued 1,414 production orders to accountancy, law and other professional services firms in relation to investigations into tax evasion according to this report by economia.

At least two Manchester United stars were reported to have been investigated by HMRC over alleged image rights tax evasion as the authorities opened new cases against top footballers in the Premier League.

As enquiries escalate amongst top flight footballers, tax investigations into the affairs of small business are also on the increase and we say it is because both groups are easy targets for HMRC.

Are you under investigation by HMRC?

Murray Patt, founder of Manchester-based accountants Alexander Knight & Co, said:

“It increasingly feels as if small and medium-sized businesses and Premier League footballers are two of the most targeted groups for tax investigations by HMRC.

“In the case of footballers, forming an image rights company to receive payments of up to one fifth of a player’s salary is actually a legitimate tax strategy approved by the authorities if set up appropriately.

“However, it’s logical for the authorities to launch investigations into high profile players who earn their wealth via multiple sources because it can be a rich source of extra income, particularly for players who are new to the Premier League from other countries where tax rules are different.

Get insurance for HMRC investigations 

“Let’s not forget that small and medium sized businesses are an even easier target. If you don’t take care as a small business owner you’re at risk of being pulled up over minor mistakes or small disparities, which could incur disproportionately heavy fines and penalties imposed by HMRC.

“It’s important to have insurance in place to cover the cost of an investigation if you are a small or medium sized business, since in most cases you won’t have the funds of a top-flight footballer. Don’t get caught offside by HMRC.”

Alexander Knight & Co will arrange insurance for you and your business against the costs of an expensive HMRC investigation. Don’t get caught offside by HMRC. Speak to our specialist tax team now on (0161) 980 8788.

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Alexander Knight & Co advises football startup business in Manchester

Mi Hiepa Scout advised by Alexander Knight & Co

We’re delighted to be advising Manchester-based football technology startup Mi Hiepa Scout, an innovative company bringing virtual reality (VR) into the professional game.

Mi-Hiepa Scout has launched the world’s first virtual reality technology aimed at rehabilitating injured footballers and scouting new talent.

Top clubs, physiotherapists and sports scientists have been involved in the development of the product, which is being rolled out this season.

Premier League clubs

Premier League clubs are already looking at the system, created by Mi-Hiepa Scout, and its founders hope that it will also be used to improve current players and scout for players in the future.

The company’s proprietary limb tracking mechanism enables the system to track the movement of a player’s feet and shins independently in 3D space. With no need for handheld controllers to move feet, accuracy and immersion in the virtual reality experience is first class.

Joint venture

The company was created as a joint venture by leading Manchester developers Mi and sports data experts Hiepa and we’ve been appointed as their accountants and will be assisting the company moving forwards.

Adam Dickinson, Production and Development Director of Mi-Hiepa Scout, said:

We’ve been delighted with the reaction by football clubs in the professional game. We’re operating at the elite level of sport and clubs are keen to explore any advantage they can bring to their squad.

For the first time, coaches, managers, scouts and sports directors can produce rapid, standardised, measurable and comparable results from talent pools that may have been previously unmanageable.

Our system helps get players better mentally and physically through individual training drills.

From a talent spotting perspective, it provides an objective, sterile environment, meaning all players have exactly the same conditions and can be compared equally. A youngster could go through our tests in thirty minutes and you would get objective data about their ability and performance. You could test 1,000 players a week as a first point of filter.

One of the problems many clubs are trying to solve is player engagement during rehab after an injury has occurred. This product certainly does that while providing valuable data for players, coaches and club performance analysts.

Strong credentials

Murray Patt, founder of Alexander Knight & Co in Manchester, said:

The professional world of sport is increasingly looking at technology to amplify the recovery time of injured athletes. The management team at Mi-Hiepa Scout has got strong credentials and connections in the world of football and there is no doubt that the growth plans for the business are impressive. We’re delighted to be advising the team.

Gary Black of Manchester law firm Freeman Fisher, who is advising the company, said:

It’s great to see a local company making huge waves in the VR world within the sporting arena. Manchester is already known as being one of the leading cities in sporting success and Mi-Hiepa Scout is making sure that our city is seen as the leading city when it comes to technology in sport.

If you are a startup business in Manchester – and wish to be formed as a joint venture initiative between investors and/or other companies – speak to Murray Patt at Alexander Knight & Co. 

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