It would appear that this is still a mess with clubs having different approaches. It is the ARA understands that Premiership Rugby has advised all clubs that all agents’ fees should be treated as a benefit in kind and should appear on the player’s P11D.
The fee should be treated 100% as a benefit in kind and should include any element of vat. However in practise clubs in the Premiership seem to be adopting different approaches with a rough split of a third will treat 100% as a benefit in kind as advised by Premiership Rugby; a third have some understanding with their local HMRC office and have a percentage ratio applied and a third declare nothing for P11D purposes.
The ARA are trying to formulise a procedure with the Premiership which makes it clear at the time of any deal being concluded with a player how each club will treat the P11D element with regards agent fees.