Harry Potter star Rupert Grint?s attempts to have a tax rebate would?ve saved him ?1M ($1.3M), had it succeeded.
Grint had followed the advice of accounting firm, Clay & Associates, to change his accounting date so that an extra 8 months will be taxed in 2009-10 instead of the following tax year where the tax rate rose from 40% to 50%.
The 27-year-old British actor?s accountants had tried to move 8 months of his Harry Potter income into the 2009-2010 tax year when the top rate of tax was still at 40%. A new rate of 50% was introduced in 2010-2011 by the last Labour government. This was to safeguard public finances in the wake of the banking crisis. The new rate was abolished 2 years later.
According to BBC, a tax tribunal judge had rejected Grint?s appeal against an HM Revenue and Customs (HRMC) block on him changing his accounting dates to shield his earnings. Though the tax authorities agreed that he had the right to change his accounting date, unfortunately, he had not actually done so.
?HMRC accepted that he had the right to change his accounting date. The dispute solely concerned whether he had done so within the meaning of the legislation,? said Judge Barbara Mosedale. Grint had made it clear ?that he placed his faith in his father and accountants to deal with his financial affairs? as his knowledge was ?quite limited.?
The judge stressed that the HRMC?s case that Grint was involved in was not about tax avoidance since the tax had already been paid. The star, who played Harry?s best friend, Ron Weasley in the Harry Potter movie franchise was said to have generated a turnover of ?28M and ?15M in net profit.
Grint was 12 years old when he first appeared in the Harry Potter series. By the time they wrapped up the 8 movies in 2011, he was already 23 years old. He is currently filming a comedy TV series called Sick Note.