Public appearances are a useful source of additional income for rugby players. You might find work on TV, speaking at events, or promoting products. These extra earnings could boost your finances, but your work off the pitch can also complicate your tax position.
The type of tax you pay, and when you pay it, depends on how you structure your income.
Here are four taxes you might pay on earnings from public appearances.
1. Income Tax and National Insurance contributions
You might be paid directly for TV work or speaking engagements, meaning the earnings form part of your personal income. In this situation, you will likely pay Income Tax on that wealth, and it is important to consider how this might affect your overall tax position.
As of 2025/26, the first £12,570 you earn is tax-free. You will then pay:
- The basic rate of 20% on earnings between £12,571 and £50,270
- The higher rate of 40% on earnings between £50,271 and £125,140
- The additional rate of 45% on earnings above £125,140.
You will also pay National Insurance contributions (NICs) at a rate of:
- 8% on earnings between £12,571 and £50,270
- 2% on earnings above £50,271.
If you receive a salary from playing rugby and bring in extra income from public appearances on top, you could move into a higher tax bracket.
This means that a large portion of your supplementary earnings could be subject to the higher or additional rate of Income Tax.
That is why you may want to consider alternative ways to manage your income, such as creating a limited company. You may still pay Income Tax when drawing wealth from a company (more on this later), but you could give yourself more control over your tax position.
2. Corporation Tax
Professional rugby players often manage their public appearances through a limited company. If you choose this option, fees are paid to the company, rather than directly to you. As such, the wealth does not form part of your personal income.
This means you will not pay Income Tax and NICs right away. However, you will pay Corporation Tax on profits made by the business.
As of 2025/26, you will pay:
- 19% on profits up to £50,000
- 25% on profits of more than £250,000.
You will receive some tax relief on profits between £50,000 and £250,000, effectively meaning that the amount of tax you pay increases gradually as your earnings rise.
One potential benefit of setting up a limited company is that the tax you pay upfront could be lower because Corporation Tax rates are lower than those for Income Tax and NICs. Additionally, you may be able to claim allowable business expenses and reduce your taxable profits.
That said, you will need to extract wealth from the company, and the tax you pay depends on how you do this.
You can pay yourself a salary, and this will be taxed in the same way as personal income. Alternatively, you could take dividends from the business.
3. Dividend Tax
As well as earning a salary, you can draw wealth from a limited company by paying yourself dividends. This is a portion of the profits earned by the company, paid to shareholders.
Crucially, dividends are taxed at a lower rate than other income. As of 2025/26, the first £500 you earn from dividends is completely tax-free.
You will then pay:
- 8.75% if you are a basic-rate taxpayer
- 33.75% if you are a higher-rate taxpayer
- 39.35% if you are an additional-rate taxpayer.
Bear in mind that from April 2026, the basic and higher rates of Dividend Tax will increase by 2 percentage points. This means the basic rate will rise from 8.75% to 10.75% and the higher rate from 33.75% to 35.75%. The additional rate will remain unchanged at 39.35%.
Despite the upcoming changes, dividends could be a more tax-efficient way to access your earnings from public appearances. You may decide to use a combination of salary and dividends to manage your tax liability.
Using a limited company in this way may give you control over how and when you pay tax, as you can choose how you draw your profits.
However, you may want to seek professional advice to make sure you are being as tax-efficient as possible.
Get in touch
We can help you decide on the best ways to manage additional income you earn off the pitch.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate tax planning.