New tax rate to hit footballers hard
The Premier League’s top earners – including Chelsea duo John Terry and Frank Lampard. Liverpool captain Steven Gerrard and Manchester City pair Robinho and Carlos Tevez – will be hit hard by the new tax rate which could see players up to £770,000 out of pocket.
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The England trio are among those who will be most affected by the new 50 percent tax-rate which is set to be introduced in 2010, according to ACCA (the Association of Chartered Certified Accountants).
Chelsea captain Terry – who earns a whopping £151,000 a week – will see an extra £770,200 taken out of his annual salary while team-mate Lampard will be £765,000 out of pocket.
While Liverpool midfielder Gerrard – behind the Chelsea twosome and Brazilian Robinho in the list of Premier League’s richest players – will have a further £713,000 taken out of his wages.
"Professional footballers might get well paid, but they make a huge contribution to the tax intake as well," Chas Roy-Chowdbury, ACCA’s head of taxation, said.
"Fernando Torres and Steven Gerrard will pay a combined total of around £6,354,000 to the tax man next year. They, more than most, will feel the bite of the new top-rate 50 percent tax."
The new tax rate means that Gerrard will pay a total of £3,565,000 in tax out of his wages for 2010.
The rate will affect up to 350,000 UK residents as the rate applies to all salaries above £150,000.
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The Premier League’s top five earners (wages/how much extra they will pay):
Robinho: £160,000 per week - £817,000 tax
John Terry: £151,000 p/w - £770,200
Frank Lampard: £150,000 p/w - £765,000
Steven Gerrard: £140,000 p/w - £713,000
Carlos Tevez: £140,000 p/w - £713,000
Gregg Davies is the Chief Sub Editor of FourFourTwo magazine, joining the team in January 2008 and spending seven years working on the website. He supports non-league behemoths Hereford and commentates on Bulls matches for Radio Hereford FC. His passions include chocolate hobnobs and attempting to shoehorn Ronnie Radford into any office conversation.
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