Van Der Vaart's wages?

[Kendall]

Need to earn over 150k
0-£37400 is taxed at 20%
£37400-£150k is taxed at 40%
£150k+ is taxed at 50%

So if he is on £75k a week, half a weeks wages will be taxed at 20%, 1.5 weeks wages at 40% and then the rest at 50%, so he'll earn around £38k after tax.

That is assuming it's all done properly, all declared as income etc. If it is bonuses they are taxed at different rates I think.

Nay, bonuses are merely added to your income - if declared that is.

After all, people in hospitality will rarely declare tips which in a lot of cases are more than their wages, but they should be law.

 

[WhiteStripe]

There are ways of reducing your your immediate income tax bill, but not many that will substantially reduce what he's having to pay to be fair.

The 50% tax bracket is a real put off for sportsmen.

Hence the ludicrous wages of some footballers in this country. Football clubs have to pay overinflated amounts to bring their basic salary in line with other European countries.

 

[tylaw]

You weren't getting hammered mate. I just forgot for a minute that footballers are ****s!

Too right! They pay minimal tax but expect us to spaff our pants everytime we see one of them give a bit of money to charity.

That's not even mentioning half of Crochy's cash-in-hand transactions :wink:

 

[GeneralBurk]

£75k is £37k after tax...

No it's not. 75k per week equals 3.9m per year gross after tax and ni deductions it's 2.3m which is 44k net.

 

[GeneralBurk]

Nay, bonuses are merely added to your income - if declared that is.

After all, people in hospitality will rarely declare tips which in a lot of cases are more than their wages, but they should be law.

Tips are only taxable if the propritor divvies up the money. If the employees do it themselves then it is treated as a gift under the law.

 

[Real_madyidd]

FYI - if he wishes to be more efficient with his wages he can make massive pension contributions and claim the tax back. Footballers have special pensions set up for them due to the short term nature of their careers allowing them to take "retirement income" (including a tax free lump sum) far before normal retirement.

I know this as I am a reformed financial adviser and one of my old clients was a current footballer and one was an ex professional- and no, you wouldn't know who they are.

 

[bigturnip]

Tips are only taxable if the propritor divvies up the money. If the employees do it themselves then it is treated as a gift under the law.

Nope, tips are taxable whether accepted directly or via the employer, you have to declare them to your local tax office and they will alter your tax code accordingly unless you self asses and then you just declare them there.

The only diffence is that tips accepted directly do not count as part of the National Minimum Wage, whereas tips paid via an employer do.

 

[MR_BEN]

No it's not. 75k per week equals 3.9m per year gross after tax and ni deductions it's 2.3m which is 44k net.

Incorrect.
If he earns £75,000 per year (as a salary), this is £3,900,000 per year.

This equates to....

Annually
Gross Income £3,900,000.00
Basic Tax-Free Allowance £6,475.00
Allowance Reduction £6,475.00
Tax-Free Allowance £0.00
Taxable Amount £3,900,000.00
Tax £1,927,520.00
National Insurance £42,759.60
Net Take-Home £1,929,720.40

Monthly Weekly
Gross Income £325,000.00
Basic Tax-Free Allowance £539.58
Allowance Reduction £539.58
Tax-Free Allowance £0.00
Taxable Amount £325,000.00
Tax £160,626.67
National Insurance £3,563.30
Net Take-Home £160,810.03

Monthly Weekly
Gross Income £75,000.00
Basic Tax-Free Allowance £124.52
Allowance Reduction £124.52
Tax-Free Allowance £0.00
Taxable Amount £75,000.00
Tax £37,067.69
National Insurance £822.30
Net Take-Home £37,110.01

Of course though, a footballers salary will be made up of basic salary, plus image rights.. image rights can be treated differently at the moment - paid offshore, into business accounts - hence avoiding tax. The HMRC are trying to fight this now as they are losing shed loads of money a year because of this which they are claiming is tax avoidance.

Kendall - you were so close - but you forgot that the tax free allowance gradually reduces to zero for those earning over 120k (??) per year..

Rgds
Ben..ACMA

 

[adiepf]

i would be amazed if a player of his calibre was not our top earner...

 

[MR_BEN]

FYI - if he wishes to be more efficient with his wages he can make massive pension contributions and claim the tax back. Footballers have special pensions set up for them due to the short term nature of their careers allowing them to take "retirement income" (including a tax free lump sum) far before normal retirement.

I know this as I am a reformed financial adviser and one of my old clients was a current footballer and one was an ex professional- and no, you wouldn't know who they are.

Is this right? I thought that your pension was only tax free if it was part of a company scheme.. ie deducted at source? I didnt think you could claim your tax back on private pension scheme? (but meh.. what do i know.. i may have the qualifications, but i dont go anywhere near payroll or payroll taxes in my roll - and never have).

 

[Jules77]

Need to earn over 150k
0-£37400 is taxed at 20%
£37400-£150k is taxed at 40%
£150k+ is taxed at 50%

So if he is on £75k a week, half a weeks wages will be taxed at 20%, 1.5 weeks wages at 40% and then the rest at 50%, so he'll earn around £38k after tax.

That is assuming it's all done properly, all declared as income etc. If it is bonuses they are taxed at different rates I think.

Those bands are for your ANNUAL wage, not weekly.

so the 0-37400 taxed at 20% is actually 0-(37400/52) if you are going to describe it weekly => his first 719 quid a week is taxed at 20%... etc etc these brackets below 50% end up being so insignificant given his sort of earnings, that it's perfectly reasonable in a football fan forum just to call it 50% of the 75k!

 

[MR_BEN]

Those bands are for your ANNUAL wage, not weekly.

so the 0-37400 taxed at 20% is actually 0-(37400/52) if you are going to describe it weekly => his first 719 quid a week is taxed at 20%... etc etc these brackets below 50% end up being so insignificant given his sort of earnings, that it's perfectly reasonable in a football fan forum just to call it 50% of the 75k!

what about NI? i mean.. how comes they only pay NI @ 1.1 % rather than 11%? Assume there is a cap - what is it?

 

[Kendall]

FYI - if he wishes to be more efficient with his wages he can make massive pension contributions and claim the tax back. Footballers have special pensions set up for them due to the short term nature of their careers allowing them to take "retirement income" (including a tax free lump sum) far before normal retirement.

I know this as I am a reformed financial adviser and one of my old clients was a current footballer and one was an ex professional- and no, you wouldn't know who they are.

Pretty sure the new restrictions on claiming back higher rate tax relief on pension contributions for those with 'relevant' income in excess of £130,000 would make this rather pointless.... I don't know if that is any different for footballer's pensions. As far as I'm aware the only difference is an earlier retirement date, as you've mentioned.

 

[Kendall]

Kendall - you were so close - but you forgot that the tax free allowance gradually reduces to zero for those earning over 120k (??) per year..

Rgds
Ben..ACMA

:lol: of course.

That would've gotten me into a lot of trouble at work

 

[Misfit]

Modern football eh?

 

[MR_BEN]

:lol: of course.

That would've gotten me into a lot of trouble at work

haha.. only if you do salaried payroll.. and dont have software that calculates this all automatically

I gladly dont get involved in payroll..i'm sure it would just piss me off seeing how much the lazy fuckers get paid.

 

[Kyras]

Those bands are for your ANNUAL wage, not weekly.

so the 0-37400 taxed at 20% is actually 0-(37400/52) if you are going to describe it weekly => his first 719 quid a week is taxed at 20%... etc etc these brackets below 50% end up being so insignificant given his sort of earnings, that it's perfectly reasonable in a football fan forum just to call it 50% of the 75k!

Yeah I know, hence why I said around £38k.

 

[Real_madyidd]

Pretty sure the new restrictions on claiming back higher rate tax relief on pension contributions for those with 'relevant' income in excess of £130,000 would make this rather pointless.... I don't know if that is any different for footballer's pensions. As far as I'm aware the only difference is an earlier retirement date, as you've mentioned.

I am under the impression that the new rules (which came in after I had stopped being an IFA) mean you can still claim back basic rate of tax on all of your contributions (so 20% tax relief) this means VDV will actually be a 30% tax payer on part of his income.

I can't remember all of the details, but I was just giving an exampe of being tax efficient rather than avoiding tax.

 

[cabinfever]

Can he fill in at right back?