Will 50 Per Cent Tax Rate Kick Premier League Into Touch?

Summary

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B irmingham-based tax partner David Jewkes at leading advisor Grant Thornton, says: "From a player's perspective, while the increased tax rate is unpalatable, the rise in popularity of the 'net pay' arrangement goes some way to sweetening the pill. Not so for the club, whose wage bills will increase disproportionately in order to take account of this liability.

"Couple this with the strengthening of the Euro against Sterling, plus the significantly lower rates of tax suffered by players abroad and two problems emerge: the UK is less attractive to foreign players and clubs might be reluctant to compete for the best talent if they have to compensate them for the UK's higher tax rates."

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Extract

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Will 50 Per Cent Tax Rate Kick Premier League Into Touch?

According to Mr Jewkes, for a player currently earning a yearly salary of pounds 1 million under a "net pay" agreement, the cost to the club in 2009/2010 is roughly pounds...

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