REVEALED: Cristiano Ronaldo’s net income will rise by £1.3M per year, with the average annual income of a Premier League footballer rising by £240k after Kwasi Kwarteng’s controversial mini-budget.
- Premier League players to benefit from new government tax cuts
- The top tax rate is dropping from 45 percent to 40 percent across the country.
- A-list stars already rake in an average of £4m a year, a figure set to rise
- Cristiano Ronaldo is expected to collect an additional £1.3m a year after the cuts.
- Man United superstar earns a staggering £400,000 a week at Old Trafford
Cristiano Ronaldo is set to raise an extra £1.3m a year following new tax and national insurance cuts announced by the government, according to reports.
The UK Government has revealed that the top tax rate cut will be lowered from 45 percent to 40 percent, which will be like music to the ears of Premier League footballers.
On average, A-list stars already rake in an estimated £4 million per year after tax, according to The times – but that number will now rise thanks to tax cuts and changes to national insurance.
One of the biggest beneficiaries of the cuts, outlined in Chancellor Kwasi Kwarteng’s mini-budget, is Manchester United superstar Ronaldo, who reportedly earns £400,000 a week at Old Trafford.
Football finance author Kieran Maguire claims the Portugal captain will earn more than £1m in additional net income as a result of the changes, saying Yo: ‘Cristiano Ronaldo’s earnings will increase by approximately £1.3m over the course of 12 months, which is a lot of money.’
Mohamed Salah, who earns the same salary as Ronaldo at Liverpool, is also in line for an additional £1.3m over the next 12 months.
Cristiano Ronaldo is set to raise an extra £1.3m a year after new tax cuts
Foreign Minister Kwasi Kwarteng is ready to cut the top tax rate from 45 to 40 percent.
Mohamed Salah will also receive more than £1 million annually once the new measures are put in place.
Manchester City midfielder Kevin de Bruyne takes home £385,000 a week, meaning he will take home an extra £924,000 a year due to cutbacks.
His new teammate Erling Haaland and Manchester United goalkeeper David de Gea earn £375,000 a week, which is an extra £900,000 at a 40 per cent tax rate.
Tottenham striker Harry Kane, on a £200,000-a-week contract, can look forward to a £480,000 annual increase if he stays on the same terms.
The average net salary of a Premier League player is now believed to skyrocket by almost £240,000 a year, making England’s top flight an even more attractive destination for foreign talent.
Manchester City duo Kevin de Bruyne (£925k) and Erling Haaland (£900k) will also save money
Manchester United’s David de Gea is also expected to earn an additional £900,000 a year.
Tottenham striker Harry Kane’s £200,000-a-week salary would net him an extra £480,000
The Premier League already pays the highest average salary in European football, although it does not have a special tax regime for foreign players like in Italy and France.
Italian tax rules allow foreign players to have the first 50 percent of their salary tax-free for five years if they have a contract of at least two years. The country’s top tax rate is 43 percent.
In France, foreign recruits can pay as little as 27 percent.
Spain recently ended its tax breaks for players and imposes a top rate of 47 per cent, although this varies across different regions, while Germany’s rate is 45 per cent.
Saif Rubie, a prominent football agent who regularly deals with international transfers, believes the UK tax cuts will only encourage foreign players to target the Premier League more.
The average Premier League player is expected to save around £240,000 a year after the cuts.
Rubie said: ‘The Premier League is now the leading league in the world in terms of its wealth across the board. [goes] and I am sure that this additional tax incentive will make it more attractive.
“However, in countries like France and Italy, they make even bigger concessions for foreign players coming into the league, so top clubs can still make very attractive offers for players.”
According to EY accountant researchPremier League players shelled out £1.4bn in direct taxes during the 2019-20 campaign.
The latest Government cuts mean the figure is expected to fall by around £70m in future.