Do not believe that this is real. Most of these footballers are 'limited companies'. In other words, their company gets paid gross and they get a dividend. This ensures that they ay a much smaller rate of tax. In other words, tevez would only pay approx 20% tax on that money. No right minded individual on that size of salary would be PAYE and attract 40-51% tax. There is also things like image rights and other bonus payments not showing.
Well at least he paid more tax than Starbucks and he probably makes a better cup of coffee!
He has gone up in my estimation for paying a fair whack of tax in relation to his income.
PS Cafc999 - it doesn't quite work like that - the dividends would be taxed as though they were earned income not dividends - the savings come in national insurance contributions.
Well at least he paid more tax than Starbucks and he probably makes a better cup of coffee!
He has gone up in my estimation for paying a fair whack of tax in relation to his income.
PS Cafc999 - it doesn't quite work like that - the dividends would be taxed as though they were earned income not dividends - the savings come in national insurance contributions.
cheers for that sm, i don't know the full in's n outs of ltd company taxation but i know he would pay less. I have also found out that some of these lads do not get paid monthly. When beckham played for real madrid those players only got paid twice a year!! It was big bucks though
Believe it's real, mate of mine works for a football website and put it up, they got a letter from Tevez's lawyers (the amazingly named Teacher Stern solicitors) demanding they take it down as it was a confidential document.
Was the Man City Ltd Company re....somethinged when they were taken over? Is that why it has a year on the end, like when we were re-whatevered in 1984? Man, my business terminology is terrible.
Well at least he paid more tax than Starbucks and he probably makes a better cup of coffee!
He has gone up in my estimation for paying a fair whack of tax in relation to his income.
PS Cafc999 - it doesn't quite work like that - the dividends would be taxed as though they were earned income not dividends - the savings come in national insurance contributions.
cheers for that sm, i don't know the full in's n outs of ltd company taxation but i know he would pay less. I have also found out that some of these lads do not get paid monthly. When beckham played for real madrid those players only got paid twice a year!! It was big bucks though
This isn't exactly true. Footballer's are employees and therefore liable to tax earned on any income no different to anyone who works for a company that is registered in the UK. It is true that some footballers divert income, ie bonuses and sponsorships to Limited companies in the hope of paying corporate tax but this money, as someone has pointed out, is just as liable to the same levels of taxation if and when the individual takes a dividend.
Tax is essentially based on your individual working situation as well as your domesticity. Where an F1 driver can work for a British based F1 team, he can choose to live in Monaco and pay no tax so long as he is not in the UK for more than 91 days a year. A footballer, playing for a British team, would find that very difficult to achieve.
EGAddick, you are kind of right. However, if you we're a footballer on say £10 million a year and you where PAYE you would be liable to 40-50% tax and a load of national insurance contributions. Now, change that to a ltd company and pay yourself minimum wage. You are now only paying minimal tax and NI and your company is only liable to corporation tax (which I think is about 20%). They would also 'employ' theire wives, family, etc,etc Bare in mind these guys employ top accountants so they legally pay minimal tax by claiming business expenses. I know a few people who run there own company that do this, yet they work for big companies non stop
It's completely irrlevant if 'these guys employ top accountants' if you are a UK domicile and earn income here you are subject to UK tax. Footballers will be paid in separate ways, they will be an employee of a football club but they can earn sponsorships and things like 'image rights' as a director of a company - this, as you point out is taxed differently, but in the vast majority of cases footballers pay tax as employees and if they're earning the sums that are routinely quoted it'll be the top rate.
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This is three years old by the way, he's probably on a lot more now!
£24 fine, is it worth it? They are fined the same as a Sunday morning player.
No right minded individual on that size of salary would be PAYE and attract 40-51% tax.
There is also things like image rights and other bonus payments not showing.
He has gone up in my estimation for paying a fair whack of tax in relation to his income.
PS Cafc999 - it doesn't quite work like that - the dividends would be taxed as though they were earned income not dividends - the savings come in national insurance contributions.
Joined City in July 2009
I have also found out that some of these lads do not get paid monthly. When beckham played for real madrid those players only got paid twice a year!! It was big bucks though
Tax is essentially based on your individual working situation as well as your domesticity. Where an F1 driver can work for a British based F1 team, he can choose to live in Monaco and pay no tax so long as he is not in the UK for more than 91 days a year. A footballer, playing for a British team, would find that very difficult to achieve.
With a gross monthly salary of approx £750k, he would have 'only' earned £6.7m. It doesn't compute.
Bare in mind these guys employ top accountants so they legally pay minimal tax by claiming business expenses.
I know a few people who run there own company that do this, yet they work for big companies non stop