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Jose Mourinho Denies Tax Allegations

Another week and another person who has been accused of tax avoidance, this time it’s the turn of Manchester United manager Jose Mourinho.

It didn’t happen while he was in the UK as the boss of Chelsea and Manchester United though. Instead, the allegations have been made by Spanish authorities, who claim that Jose and his advisers, while manager of Real Madrid, made up a shell company in the British Virgin Islands in order to funnel money away from Spain.

The agency who represent Jose Mourinho have denied any wrongdoing, and in a statement released this week they have portrayed the Portuguese manager as a model citizen while in Spain, who paid his taxes and never broke the law.

This statement claims that Mourinho paid 26 million Euros in tax while living in Spain, with an average tax rate of around 41%.

So it looks like Mourinho is denying any wrongdoing, and that he was just a employee in Spain during that time who did his job and paid his taxes. Kind of like the majority of contractors and freelancers here in the UK. Just getting on with business while at the same time making sure the HMRC are paid their dues.

Needless to say, I think that Jose Mourinho will have a good accountant, both in Spain and here in the UK, and it wouldn’t surprise me if they eventually find him completely innocent.

Can the same be said about Cristiano Ronaldo though, who played for Mourinho at Madrid and still plays in the Spanish capital? Well, if reports are to be trusted, there are some claims that he could be facing a minimum of 6 years in jail due to being accused of something similar.

However, this seems to be a much bigger story, due to the fact that the Spanish government are saying it could be 150 million Euros that has been funnelled out of the country and into tax havens such as the British Virgin islands.

Who knows if this is true or not? At the end of the day, these are just claims that have been made, and while we are yet to hear from Ronaldo personally, his agency have issued a complete denial and have even published documents relating to his finances that they say prove his innocence.

Let’s wait to see what happens with this one, but it just goes to show that the government will go after anybody who they believe to be not paying taxes, even if it is a famous football player who is known around the world. They have no problem launching an investigation and even putting someone in prison if they find them guilty.

For most contractors here in the UK though, these kind of stories are interesting to read but far away from their reality. The majority of self employed professionals are more concerned with finding the right contractor accountant or making sure they keep accurate records of their finances.

Let’s not forget about the upcoming digital tax system, that requires the self employed to file 4 tax returns a year online. I’m sure many people in the UK are looking forward to that.

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