Once such income exceeds the £1,000 “trading income allowance” for a year, it becomes taxable and the player may need to submit a personal tax return (depending on the level of their other income). While Esports players may well be employees of teams, in many cases they will have at least some sources of “non-employment” income. However, self-employed income is not usually taxed at source and it is the individual’s responsibility to declare this to HMRC. Employment income is usually taxed at source, under PAYE. In other sports, such as football, the only source of a player’s income at the start of their career is usually employment income (from the club) and any self-employment income comes later (e.g. The first step is for a player to consider whether they need to register with HMRC and submit a tax return. But be under no illusions, tax applies whatever the age of the player and, as a player’s career develops, the types and sources of income they receive may expand – adding complexity to their tax affairs. Yet, if successful, they can quickly earn significant amounts of money. Tax authorities around the world, including HMRC in the UK, are quickly getting up to speed with the varied sources of Esports income and looking at the tax affairs of those involved.įrom streamers playing at home for ‘donations’, to the top international professional players, professional Esports players usually start very young. With greater financial rewards and commercial opportunities, comes increased regulatory scrutiny. Just recently a UK Esports team won £7.4 million at The International 2022 a World of War Warcraft contest in Singapore.

According to a study by Statista, the global revenue for Esports is due to hit USD 2.9 billion by 2025 and the earnings of those involved in the sport, particularly at the top end, are growing exponentially. The growth of Esports in recent years has been meteoric and all the signs are that this trajectory will continue.

Esport income