Wimbledon: HMRC set to slap Sinner and Noskova with £1.6m tax bill
Wimbledon winners Jannik Sinner and Linda Noskova have been slapped with whopping multi-million pound tax bills after bagging £3.6m apiece at the All England Club.
Sinner defended his title with a four-set win over French Open champion Alexander Zverev on Sunday while Noskova toppled Czech compatriot Karolina Muchova in three sets on Saturday.
Both picked up £3.6m in SW19 – with Grand Slams offering equal prize money for singles titles – but will be hit by HMRC because of “nuanced and specific tax rules for non-resident sportspersons”, according to a Menzies LLP partner.
“Assuming they are tax residents in Monaco and the Czech Republic, the UK tax treatment of their Wimbledon prize money is broadly the same as for a UK resident,” added.
“Initially tax may be withheld at source at a rate of 20 per cent, which on prize money of £3.6m equates to £720,000. However, this withholding is a payment on account of the player’s ultimate UK tax liability, and assuming the full £3.6m is taxable in the UK, with no deductible expenses and no additional UK-attributable endorsement income, the final UK income tax liability could exceed £1.6m.
“This would leave around £2m after UK income tax, before taking into account agent commissions, coaching costs, travel expenses, and other professional costs.”
Huge Wimbledon tax bill
Overseas players – like Sinner and Noskova – may then get hit with additional taxes at home, while any potential UK player would be slapped with National Insurance charges.
Many of the world’s top players skip the pre-tournament grass court tournaments in the UK – such as the HSBC Championships at Queen’s Club, as well as Eastbourne and Edgbaston – to minimise the amount of time they spend earning income on these shores.
Many head to the continent before arriving for the two-week Championship fortnight.
“The UK seeking to tax income generated from high-profile sporting performances taking place here makes sense,” Hughes added. “However, the issue of proportionality is nuanced.
“Taxing Wimbledon prize money itself is straightforward, but attributing worldwide endorsement income and associated expenses across international tournament days becomes administratively burdensome, particularly for athletes who may only spend a relatively short period in the UK each year.”