136. ACCOUNTING NIGHTMARE! – Reality Tennis

Unlike the majority of working people, pro tennis players get paid in a variety of currencies – most typically British Pounds, US Dollars and Euros – but they can also be paid in Swedish Krona, Swiss Francs, Argentinian Pesos to name just a few. It all depends on the tournament level and the organisation hosting the event. They are also paid by cash, cheque or bank transfer, but generally speaking the higher the level of the event, the more likely the payment will be electronic.

As I have mentioned in earlier blogs (see links below), one of the sensible things to do has been for the player to have the money paid into a bank account of the same currency and up until now, that has been a good way of dealing with the different currencies and has helped reduce bank charges for foreign currency deposits, and also with money being lost due to exchange rate fluctuations. But now with the introduction of ‘Making Tax Digital’ in the UK at least, the fact that pro players are paid in multiple currencies has introduced another headache, especially for those who do the book keeping!

As of April 6th this year (2026), ‘Making Tax Digital (MTD)’ for income tax has come into play for sole traders with an annual turnover (not profit!) of over £50,000. This mandatory system requires digital record-keeping, the submission of quarterly updates, and a final year end declaration via HMRC-compatible software. Pro players who are registered as Limited Companies (usually the players in the higher income bracket) are excluded from this new MTD requirement at the moment, at least.

The fact that the tax system is going digital is, in my opinion, a good idea, or so it seems, but two issues have already come to the fore for me, in my plight to adopt this new way of working.

Firstly, you have to purchase one of several HMRC approved software systems which are supposed to help you record the players expenditure, and reconcile it with her bank account(s). Sounds simple but unless you are a trained accountant/book keeper who has had prior knowledge of financial software packages, then the introduction of this new way of thinking and recording can be quite daunting and for many, it will be extremely challenging. I have taken it on as a new learning experience – a new skill – albeit a little later in life than many!

The second issue I have with this new accounting method is the multiple currencies. How many other workers get paid in multiple currencies and have multiple bank accounts. For sure, the software package I have purchased does offer a multiple currency option but the monthly/annual subscription for that element is unaffordable for players at the mid/lower levels so what do you do?

To illustrate the complexities of a tennis pro’s income, let me share an example from a recent tournament in Bogota, Colombia. My player bought her flight to Colombia whilst in the UK and paid for it in British Pounds from her UK bank account. Whilst at the tournament, she paid for meals etc in Colombia Peso’s via a currency card. At the end of the tournament, she purchased a flight to the US and paid for this in US dollars from her US bank account. Her prize money, less Colombian Tax and stringing fees, was paid via a bank transfer in US dollars.

Some might say the easiest thing to do is for the player to open an account which offers multiple currency exchanges, and this is something my player does have, but there are occasions when it is more financially sensible to leave money in dollars for example (especially when paid in cash), rather than trying to deposit it into a sterling account or converting it into pounds, when the exchange rate on the day is less than favourable.

Recording all of this is tricky and far from straightforward so be warned if your player is about to embark on the tour, and you have volunteered to do her book keeping (to save on accountants fees)! It’s challenging if you are not mathematically minded or have very limited experience of monitoring cash flow and expenditure then maybe consider getting specialist help, as every penny counts with tennis pro’s and nothing is ever that simple!

#realitytennis