Cristiano Ronaldo is expected to bring in an additional £1.3 million annually as a result of the new cuts in taxes and national insurance announced by the government, according to reports.
The British government has announced that the cut in the top tax rate will drop from 45 to 40 percent, which will be music to the ears of Premier League footballers.
On average, top stars already receive an estimated £4 million a year after taxes – according to The times – but that figure will now rise due to tax cuts and changes in national insurance.
One of the biggest beneficiaries of the austerity cuts, detailed in Chancellor Kwasi Kwarteng’s mini-budget, is Manchester United superstar Ronaldo – who is reportedly earning £400,000 a week at Old Trafford.
Football Finance author Kieran Maguire claims the Portuguese captain will earn more than £1 million in additional net income as a result of the changes. i: ‘The take home of Cristiano Ronaldo will increase by about £1.3 million 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 £1.3million over the next 12 months.
Cristiano Ronaldo will bring in an additional £1.3m annually following the new tax cuts
Chancellor Kwasi Kwarteng will lower the highest tax rate from 45 to 40 percent
Mohamed Salah will also withdraw more than £1million annually once the new measures are in place
Manchester City midfielder Kevin de Bruyne is taking home £385,000 a week, meaning he will be taking home an additional £924,000 annually due to the cuts.
His new team-mate Erling Haaland and Manchester United goalkeeper David de Gea earn £375,000 a week, which amounts to an additional £900,000 with a 40 per cent tax rate.
Tottenham striker Harry Kane, on a £200,000-a-week contract, can expect an annual increase of £480,000 if he stays on the same terms.
It is believed that the average Premier League player’s net pay will now rise 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 special tax arrangements for foreign players like in Italy and France.
Italian tax rules allow foreign players to have the first 50 percent of their wages tax-free for five years if they have a contract for at least two years. The country’s maximum tax rate is 43 percent.
In France, foreign recruits can pay only 27 percent.
Spain recently ended the tax exemption for players and imposes a top rate of 47 percent, although this varies by region, while the rate in Germany is 45 percent.
Saif Rubie, a leading football agent who regularly deals with international transfers, believes the UK tax cuts will only encourage foreign players to progress further into the Premier League.
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 wealth across the board’ [goes] and this extra incentive with tax will no doubt make it more attractive.
“However, in countries such as France and Italy they take even more into account foreign players who come into the competition, so that the top clubs there can still make very attractive offers to players.”
According to research by accountants EYPremier League players spent £1.4bn in direct taxes over the 2019-20 campaign.
The latest government cuts mean this figure is expected to fall by around £70m in the future.
