IAG Stealth Tax Are you aware of the IAG Tax System? Do you know how to calculate what tax your club will have to pay each season?
It might seem obvious to some but IAG tax is paid on profit a club makes each season, not the bank balance.
The tax rates are as follows:
At the end of each season the IAG tax man will want his cut of your club's profit. This includes any prize money that your club may have won. Taxation is paid on profit in the following bands:
Profit Bands:
0 to 2,000,000 - 0% tax (no tax is paid on seasonal losses)
2,000,001 to 5,000,000 - 10% tax
5,000,001 to 10,000,000 - 20% tax
10,000,001 and upwards - 40% tax
Financial planning is key to minimising tax and maximising club progression. Remember if you make a loss, that loss is lost forever, it doesn't get carried forward to the next season.
You have money in the bank, would spending the cash just before the season end be sensible if it creates a loss. Could you delay spending the cash until the following season and set that expense against that years profits.
It is near the season end and you realise that your hard work is going to create a 40% tax bill this season. What can you do? It might be time to buy that new striker you wanted, your ground could do with some updating, how about a few new seats.
Getting the finances right on IAG will go along way to creating a top team.
Good luck for the season ahead.
The IAG Admin Team |
