Chancellor George Osborne has announced a series of radical reforms to the UK's pensions industry. But will his changes really give our pensioners greater control over their retirement funds or will they just blow it all on Lamborghinis?
How much tax do the world’s best footballers pay?
We all marvel at the amounts modern football players reportedly earn, but we rarely consider the tax bills involved. How much may a player’s transfer be influenced by how much tax they will have to pay? Financial site This is Money has published data showing how much the average player may earn in the world’s top leagues - and how much they may be taxed.
Many footballers playing for the world’s elite clubs will be earning in excess of £100,000 a week, with some earning more than double that. This is Money examined the earnings and taxes of a player earning £200,000 a week (leaving aside the fortune they would make on top of this in bonuses, sponsorships and endorsements).
England – Premier League
The top rate of tax in England is 45%, down after a brief period at 50% between 2010 and 2012. This means that a player such as the Chelsea and England midfielder Frank Lampard, who reportedly earns around £200,000 a week, could see his wages cut to £106,206 after tax. This means that Lampard alone could be contributing around £4.9 million a year in taxes.
Spain – La Liga
A player earning £200,000 a week will have to face the Spanish top tax rate of 52%, meaning they will lose £104,000 to tax, pocketing £96,000.
Germany – Bundesliga
For the past few years, Germany’s Bundesliga has been drawing global attention, and this year's all-German Champions League final did nothing to stop that. Germany's top tax rate is a little higher than England's and Italy's at 47.475%, meaning top earners could still take home in excess of £5.4 million a year after tax.
France – Ligue 1
The top tax band in France is the same as in England at 45%. Ligue 1 was looking like a league on the up – mostly thanks to the riches of Paris St-Germain and Monaco. But a bill currently in parliament is likely to up the top tax bracket to 75% which could see an exodus of the big names. French football clubs have even agreed to strike over the 'super-tax'.
Monaco have managed to attract superstars such as Radamel Falcao and James Rodriguez despite only recently being promoted to the top division and not being involved in Champions League football. This comes as little surprise when you remember that Monaco is in fact its own principality – where there is no income tax, instead a 13% employee social security tax. This means that a Monaco star earning £200,000 a week, would take home £174,000 of that. Don’t be surprised to see more high earners heading to Monaco in the near future...
Italy – Serie A
Italy’s rate of tax is pretty much in line with the rest of Europe, and its top band demands 46.29% of earnings. This means that a £200,000-a-week player would earn £107,420 a week after tax. (Admittedly, there are not too many examples of such players in Italy – the recent Napoli signing Gonzalo Higuaín is believed to be one of the country's highest paid stars, earning somewhere in the region of £150,000 a week.)
Russia – Russian Football Premier League
The Russian Football Premier League isn’t seen as one of Europe’s elite leagues. But that could all change. Super-rich club owners and a mere 13% top tax rate means that more and more great players are choosing to ply their trade in Russia. Samuel Eto’o’s time in Russia saw him collect around £16 million a year, after tax, playing for Anzhi Makhachkala (which has since shipped out many players owing to budget cuts). A player earning £200,000 a week in Russia will keep £174,000 of that.
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It's a shame!
Weekly salary, They should be paid monthly!
£200.000 monthly not weekly!
Some people don't make that in 4 years!
Presumably if they are an 'offshore identity' then they are not able to play for England?
We need FAIR taxation in this country, so tax loopholes should be eliminated.
Wont happen I guess because the rich control whatever colour of Government we have! Shame on them as the rich get richer while the poor get poorer!
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