When someone famous hits the news and the word tax is mentioned, chances are it won’t be because the world needs to know they’re always on time with their tax returns and always pay in full.

In fact, if you see a celebrity’s name, then the word tax, it’s a fair bet that the next word will be something like scandal or even cheat.
But if a millionaire with an expensive accountant can’t get away from HMRC, it should be a sign to the rest of us that it’s easier to just follow the rules and pay what we owe on time.

Don’t believe us? Here’s what we learned from three famous celebrity tax scandals.

Jimmy Carr

In 2012, comedian Jimmy Carr was named in the papers as one of the people involved in the K2 tax scheme. High earners like Jimmy would work in the UK, but funnel their money through offshore shell companies in the Channel Islands. Over 1,100 people were involved, avoiding an alleged £168m of tax – according to The Times – and Carr had apparently sheltered £3.3m per year and was only paying 1% tax.

When the news broke, Carr didn’t just upset his fans – he was criticised by then Prime Minister David Cameron. And in a radio interview years later, the comedian admitted he thought the tax scheme could’ve ended his career.
“In the end, I said right, I’ll pay every penny of tax I ever owed.”

The takeaway – you will get found out if you avoid tax, and it’ll cost you your reputation, plus a hefty bill. Paying years’ worth of back payments in a lump sum isn’t a great situation to be in!

Sir Michael Caine

Even a knighthood is no protection from the long arm of HMRC. Acting legend Sir Michael Caine emigrated to the USA to avoid the 83% tax rate on top earners back in the 70’s. But even though that rate’s dropped, and he’s back in the UK, he’s not really changed his ways.

In 2014, Sir Michael was accused of making use of an investment scheme called Liberty to shelter over half a million pounds. This lead to him having to pay everything back.

Of course, that led to him heading to the papers to explain that actually he loved paying tax, and he wouldn’t live in a country without income tax, and that it’s all the government’s fault for not actually spending his taxes properly.

The takeaway – on top of everything else, you’ll end up looking a little bit silly when you get found out.

David Beckham

According to British Journalist Tom Bower, there’s one reason that it’s just David Beckham and not Sir David.
It’s because the former England captain and ambassador to the King’s Foundation hasn’t been too forthcoming on his taxes. He’s technically in tax exile, living as a non-dom in Spain and avoiding British taxes.

It means he’s only able to spend 90 days every year in the country he was born in, a figure that was quickly whittled down for England training camps, media appearances and European fixtures during his time in Madrid, Milan and Paris.

The public aren’t too happy, and The Daily Mirror are convinced that this tax status is the only thing stopping us from hearing the words “Arise Sir Becks.”
Needless to say, the consequences went further than a potential snub from the British royals. In 2005, the Spanish government signed off on a royal decree that meant foreign footballers would have to pay taxes in Spain.

The takeaway – being forced to live abroad to avoid tax isn’t the whole story – upsetting HMRC can make it harder to get what you want. Even if you aren’t angling for a knighthood, you don’t want your name attached to something like “The Beckham Law!”

How can I make sure I don’t look silly?

Easy. You speak to Penny Ledger.

We’ll help you compile and submit their tax returns for just £99 each year – and that’s £99 that counts as tax deductible.
Just send us all your invoices and receipts, and our fully qualified accountants do the rest. We’ll sort out your tax returns so you don’t overpay, and we’ll make sure it’s all filed on time so you aren’t left dealing with fines from HMRC.

No laws named after you, no angry comments from Downing Street, and no looking silly in the papers. What’s stopping you?