Home Sport Football Cristiano Ronaldo to earn over £1 million after UK’s tax reduction

Cristiano Ronaldo to earn over £1 million after UK’s tax reduction

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Cristiano Ronaldo to earn over £1 million after UK’s tax reduction

Cristiano Ronaldo will earn more than £1 million at Manchester United as a result of the UK government’s reduction in the top tax bracket.

The 37-year-old is already thought to be earning a staggering £510,000 per week at Old Trafford after signing a two-year deal with the Red Devils last summer. Following Kwasi Kwarteng’s mini-budget announcement, the five-time Ballon d’Or winner will now see his bank account increase dramatically.

The newly-appointed Chancellor abolished the additional tax rate for those earning more than £150,000 per year on Friday (September 23), lowering the maximum tax bracket in the United Kingdom to 40%, which applies to those earning more than £50,271.

The government also announced the basic income tax rate would be slashed from 20% to 19% in April, as well as reversing the planned national insurance increase of 1.25 per cent.

According to football finance expert Kieran Maguire, Ronaldo’s take-home income will increase by £1.3m as a result of the changes to taxation, the equivalent of paying 26 bands 8 nurses in the UK.

“Cristiano Ronaldo’s take home will increase by roughly £1.3m over the course of 12 months, which is a lot of money. I’ll always defend footballer’s pay. We live in a market-based environment,” Maguire told the i newspaper.

“It is a short career and the majority of players don’t earn the money that provides the focus for people like me who will show the strange benefits that these things can bring. I’m sure it wasn’t the driving force of Kwasi Kwarteng’s decision-making but it does illustrate the impact it has.

“The tax issue in its own right isn’t significant but what will happen is the clue: there’ll be a significant uplift in terms of net pay and you have to ask yourself what’s going to happen in that situation? Is it going to have a positive impact on the economy?

“Ronaldo gets an extra £1.3m, he’s going to save that as he already has a huge take home whereas it could be argued if you get Manchester United’s 1,000 part-time staff an extra £1,300 each they’re going to spend that. It’s the nature of income distribution, people who are poorer spend because they can’t afford to save.”

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