Which footballers pay the most tax
There is no one definitive answer to this question. Some footballers may pay more tax than others, depending on their individual circumstances. However, as a general rule, footballers are required to pay income tax and national insurance contributions just like any other taxpayer. This means that the highest earners in the sport are likely to be those who pay the most tax.
Highest tax paying Clubs
For example, Premier League club Manchester City is one of the biggest earners in British football. In the 2017/2018 season, it generated revenues of £500 million. As a result, its players are likely to pay a significant amount of tax. This was highlighted in April 2018 when the club's captain, Vincent Kompany, announced that he was donating £1 million to a new fund set up to help Manchester's most deprived children. Kompany said that he wanted to "help make a difference" and added that "the club has helped me in so many ways that I want to give something back."
Other high-earning Premier League clubs, such as Liverpool and Chelsea, are also likely to have players who pay a lot of tax. Indeed, in June 2018 it was reported that Liverpool's Brazilian midfielder Philippe Coutinho had paid £2.9 million in income tax and national insurance contributions in the previous financial year. This made him one of the top 20 taxpayers in the UK.
It is not just Premier League players who pay a lot of tax. In Spain, the world's highest-paid footballer, Lionel Messi, is also one of the country's biggest taxpayers. In 2017, he paid £26 million in taxes, making him the sixth-highest taxpayer in Spain.
So, while there is no one definitive answer to the question of who pays the most tax in football, it is clear that some of the sport's biggest stars are among its biggest taxpayers.
What is income tax and how does it work in the UK?
Income tax is a tax that is levied on the income of individuals and companies. It is collected by HM Revenue and Customs (HMRC) and paid to the government.
In the UK, income tax is charged at different rates depending on how much money you earn. The current rates are:
- 20% on income between £11,501 and £46,000
- 40% on income between £46,001 and £150,000
- 45% on income over £150,000.
National insurance contributions (NICs) are also payable by employees in the UK. These contributions help to fund the state pension and other benefits. The current rates are:
- 12% on income between £8,424 and £46,000
- 2% on income over £46,000.
So, in general, footballers in the UK are required to pay income tax and NICs at the relevant rates. This means that the highest earners in the sport are likely to be those who pay the most tax.
Generally, footballers have to pay their taxes in the same way as any other taxpayer. This means that they have to file a tax return each year and declare all of their income.
However, some footballers may be able to take advantage of special tax arrangements. For example, some players may be able to agree a contract with their club that includes a tax-free lump sum payment. This is known as a 'pre-tax salary'.
Players may also be able to receive payments from their club in the form of loans or shares. These payments are known as 'image rights' and they can be used to reduce the amount of income tax that the player has to pay.
It is clear that footballers pay a lot of tax, and this includes some of the sport's biggest stars. However, they may be able to take advantage of certain exemptions and reliefs which can reduce the amount they have to pay. In general, they are required to pay income tax and national insurance contributions at the relevant rates.