Key points
- E-sports have a yearly worldwide viewership of 500 million and a projected global revenue of US$2.9bn by 2025.
- Tax authorities around the world are now looking at the tax affairs of those involved in e-sports.
- E-sports players can be very young but tax applies whatever the age of the player and the player may be liable to income tax and National Insurance contributions.
- E-sports players may have different sources of income which trigger different tax considerations.
- Particular care should be taken when a player earns prize money outside the UK to mitigate the risk of double taxation.
- Image rights income may be subject to either corporation tax or income tax and National Insurance depending on the structure used.
E-sports (short for electronic sports) are video games that are played competitively. It is a relatively new sport but one that is growing rapidly worldwide. The growth of e-sports in recent...