50% Tax!!

I heard from the news that any players in the English premier league earning more than 150k would have 50% tax on their wages. Will this be incorporated in the game?? If I am managing an English club, will it affect my wage structure as top players would want to compensate for the 50% tax.

That tax rate has been in force (irl) for a number of years iirc.

General rule is that the higher your pay, the higher tax rate you pay.

is it as much as 150k? i thought it was less. these figures are per week, right?

In Denmark it is about 65% including everything for the top earners

is it as much as 150k? i thought it was less. these figures are per week, right?

Anyone earning over £150k per annum pays 50% tax in the UK.

That tax rate has been in force (irl) for a number of years iirc.

General rule is that the higher your pay, the higher tax rate you pay.

It used to be 40% but it went up to 50% only recently.

I'm pretty sure that until SI can create a stable world financial model within the game that tax rates will have absolutley no effect.

I don't actually know the actual figures but i heard football analysts say that this is the reason why players are leaving the English Premier League. I know in FM that there's nothing to do with taxes as I don't realise any information on taxing of player wages.

what it actually is, is that for the 1st £5000 or so you dont pay tax, anything you earn between £5000 and £30,000 you pay 20% on, then anything you earn between £30,000 and £150,000 is taxed at 40%, and anything over £150,000 is taxed at 50%

so you dont actually pay 50% on all income only that over £150,000

Why would this be in the game? The amount actually paid remains the same, regardless of how much the player pays in tax i.e. player on £50k, the club still pays £50k, it's the player who pays the tax.

Why would this be in the game? The amount actually paid remains the same, regardless of how much the player pays in tax i.e. player on £50k, the club still pays £50k, it's the player who pays the tax.

But a player might turn down 100k p/w in England for 90k p/w in Spain due to the lower income tax rates there.

But wont it deter players from coming to england and wont it inflate the wage structure. Example would be if some club like Chelsea wants to bring in ribery or messi and the players are asking for high wages of more than 150k, the players wont find playing in england as lucrative as playing in spain or italy right?? therefore attracting players to england would be much more difficult??

But wont it deter players from coming to england and wont it inflate the wage structure. Example would be if some club like Chelsea wants to bring in ribery or messi and the players are asking for high wages of more than 150k, the players wont find playing in england as lucrative as playing in spain or italy right?? therefore attracting players to england would be much more difficult??

In real life this is possibly the case but I don't know the tax rates in other countries to compare.

But as tax isn't in FM it won't matter.

Also want to point out that £150k is only just under £3k a week which most first team players in the premiership probably already exceed.

But a player might turn down 100k p/w in England for 90k p/w in Spain due to the lower income tax rates there.

Yeah, and they might not. It's all ifs, buts and maybes. Don't see why it would need to included.

Yeah, and they might not. It's all ifs, buts and maybes. Don't see why it would need to included.

Because it affects how tempting a player would find your contract offer.

It is most unlikely that the differeing levels of domestic tax will be taken into account in the game- the outgoings to the club will be the same and the attractiveness of the team in terms of getting new players is decided by their world/domestic reputation .

Because it affects how tempting a player would find your contract offer.

Climate, prestige, league/club reputation/standard, aren't enough? I see what you're saying, but I just don't see the big deal. There are already more than enough factors that affect aplayers transfer decisions.

It would basically be a handicap against being an english club.

It should be in as it is realistic.

It could be achieved by reducing the attractiveness of the English leagues slightly?

That tax rate has been in force (irl) for a number of years iirc.

Only been brought in at 50% recently for the reaaally high earners. They used to pay 40% with people who earn £37,401 or over.

This should be implemented in the game in some way. Maybe lower the reputation of the English leagues by a notch?

Lower the reputation of the most attractive league in the world due to another factor completely?

All those players leaving the PL- one was Spanish and had been treated badly by his club (Alonso), one was little or nothing to do with money (Ronaldo), the other was Spanish (Arbeloa). I can't think of many others. Pennant? Wasn't wanted. Next.

(Also remember that this applies in Scotland, Nire and Wales too.)

Lower the reputation of the most attractive league in the world due to another factor completely?

All those players leaving the PL- one was Spanish and had been treated badly by his club (Alonso), one was little or nothing to do with money (Ronaldo), the other was Spanish (Arbeloa). I can't think of many others. Pennant? Wasn't wanted. Next.

(Also remember that this applies in Scotland, Nire and Wales too.)

It was just a suggestion ffs:D

Another consideration is that it would adversly affect a long term game, afterall IRL the british government might put the tax back down next year, this would not happen in the game though.

Tax is best ignored, as it changes in countries all the time and the game would keep it static.

But a player might turn down 100k p/w in England for 90k p/w in Spain due to the lower income tax rates there.

Exactly. (ten)

what it actually is, is that for the 1st £5000 or so you dont pay tax, anything you earn between £5000 and £30,000 you pay 20% on, then anything you earn between £30,000 and £150,000 is taxed at 40%, and anything over £150,000 is taxed at 50%

so you dont actually pay 50% on all income only that over £150,000

That is yearly by the way, a lot of players would be over the £150000 in about a month.

It has gone up by 10%, if a player last year was earning about £2m a year, they will be getting taxed roughly £800,000, now they'll be getting taxed £1m. They're losing out on £200,000 a year.

It's over £100k pa, isn't it?

what it actually is, is that for the 1st £5000 or so you dont pay tax, anything you earn between £5000 and £30,000 you pay 20% on, then anything you earn between £30,000 and £150,000 is taxed at 40%, and anything over £150,000 is taxed at 50%

so you dont actually pay 50% on all income only that over £150,000

But it doesn't mean you only pay 20% on the First 30k, then 40% on the Next 120k and %0% over that threshold. if your lucky enough to earn 150k then your wage will be 75k ( then theres national insurance:rolleyes:) Not applicable to foreign workers))

And then they stick another 2p on fuel!!!!

Why would this be in the game? The amount actually paid remains the same, regardless of how much the player pays in tax i.e. player on £50k, the club still pays £50k, it's the player who pays the tax.

Ah yes, correct in a way, but the player is taxed at Source (Club paying the wage) AND the club as the 'Employer' pays an Employers Contribution. So IRL the palyer maybe paid 50k a week by the club, but it is a sum he will never recieve. I think this is why there are bonuses and other incentives paid.

Also 150k a week reduced to 75k a week is hardly going to drag these people onto the poverty line now is it??

Give me 150k a week and ill pay 90% tax!!!!

Here's a question I've been meaning to ask for a while...

Are wages on FM pre-tax or not?

I can't see why anyone would want this in the game, certain countries pay higher and lower taxes as it is. This is taking realism a bit too far taxes have never been a concern in the game and they never should be.

Needless complication imo - it's just not needed in the game.

If SI are striving for realism than it should be included.

It should be very easy to add too, although it will be time consuming since they have to look for every countries tax laws.

Right now they have a set percentage of the importance of wage, club reputation and league reputation that players (AI) use to determine what club to sign for. Wage isn't everything obviously as I've been able to sign players for Liverpool for a smaller wage than Man City would've offered them.

All they need to do is add hard coded tax to that formula. The more professional a player is the less important that tax will be for them so the less English clubs have to give them in weekly wages.

If SI are striving for realism than it should be included.

It should be very easy to add too, although it will be time consuming since they have to look for every countries tax laws.

Right now they have a set percentage of the importance of wage, club reputation and league reputation that players (AI) use to determine what club to sign for. Wage isn't everything obviously as I've been able to sign players for Liverpool for a smaller wage than Man City would've offered them.

All they need to do is add hard coded tax to that formula. The more professional a player is the less important that tax will be for them so the less English clubs have to give them in weekly wages.

Oh come on, this is an absolutely pointless feature, which no-one can prove happens irl. The whole realism argument has nothing to do with this unless someone can prove to me that players irl actually take tax into consideration. Regardless of the fact that, as Ackter pointed out, it's a needless complication not only for SI, but for the player too.

Its more of EPL clubs attracting top players than the tax itself actually. If a spainish club can attract player A with wages of 150k per week, will an english club be able to attract the same player with 150k per week in addition to the tax that is imposed?? Wont EPL clubs have to offer more wages to player A maybe as much as of 250k+ per week just to get him interested in playing in the EPL??

Oh come on, this is an absolutely pointless feature, which no-one can prove happens irl. The whole realism argument has nothing to do with this unless someone can prove to me that players irl actually take tax into consideration.

Of course they do. It'd be naive to believe that some players won't choose the bigger wage option when choosing between Man Utd and Barcelona for example.

The more professional a player is the less likely he'll be swayed by money.

Why? In the UK tax is currently 50% on top earners. 12 months ago it was 40%. in another 12 months it could be 30% or it could be 70%. We just dont know. Therefore things we cant predict shouldnt be in, so this belongs with natural disasters and plane crashes in a list of things we dont need.

Why? In the UK tax is currently 50% on top earners. 12 months ago it was 40%. in another 12 months it could be 30% or it could be 70%. We just dont know. Therefore things we cant predict shouldnt be in, so this belongs with natural disasters and plane crashes in a list of things we dont need.

The game goes on a year by year basis so that shouldn't be an issue. Also I'm pretty confident that the tax will stay as it is for a while.

Of course they do. It'd be naive to believe that some players won't choose the bigger wage option when choosing between Man Utd and Barcelona for example.

The more professional a player is the less likely he'll be swayed by money.

There's a difference between a bigger wage and tax breaks. You give me a dozen examples of players who moved to Spain instead of England because of taxes and perhaps then the naysayers will consider it remotely relevant to the game.

Of course they do. It'd be naive to believe that some players won't choose the bigger wage option when choosing between Man Utd and Barcelona for example.

The more professional a player is the less likely he'll be swayed by money.

Just to expand on this a little more.

Players already choose a higher wage sometimes when choosing between clubs. That, I think, we can all agree on.

This whole tax thing is basically that, players stand to earn less in England. So a 100k a week wage will really bring in 50k instead of 60k a week. That's a significant difference for some.

Why? In the UK tax is currently 50% on top earners. 12 months ago it was 40%. in another 12 months it could be 30% or it could be 70%. We just dont know. Therefore things we cant predict shouldnt be in, so this belongs with natural disasters and plane crashes in a list of things we dont need.

I agree totally.

If realism is what people want then really we shouldn't be able to negoiate contracts or transfers anyway as in real life its the chief executive and other staff members that sort contracts and transfers out. Should that be removed from the game?

I read recently that a player on £30k per week (IIRC, it was an average top division wage anyway) in Spain will save £10m over the course of a 5 year contract compared to England due to the tax breaks they get there.

If you don't think that features in their thinking, you're vastly overestimating the morals of the average professional footballer.

I read recently that a player on £30k per week in Spain will save £10m over the course of a 5 year contract compared to England due to the tax breaks they get there.

If you don't think that features in their thinking, you're vastly overestimating the morals of the average professional footballer.

There's a difference between what might be and what is. Examples of players that moved to Spain, from England, for tax reasons?

Ok ok, maybe it shouldnt be included in the game. I just thought that since it made quite an impact IRL that maybe it could have an effect on FM.

Btw, i read it from this website.

http://soccerlens.com/english-premier-league-football-clubs/13878/

There's no doubt it probably does have an impact irl, but there is absolutely no proof that it definitely does. As SCIAG pointed out earlier, two transfers in the summer, Ronaldo who just wantedto play for Madrid and Arbeloa who was Spanish and backup at Liverpool. Atm there is absolutely no proof that this has had a major effect on football, until there is proof, it cannot be included.

I agree totally.

If realism is what people want then really we shouldn't be able to negoiate contracts or transfers anyway as in real life its the chief executive and other staff members that sort contracts and transfers out. Should that be removed from the game?

Honestly I agree with this too.

Though I'm pretty sure managers do get a say on how much a player should be given. I don't think they're completely in the dark about what's going on. People responsible for negotiations would probably ask the manager if he thought a certain player should be bumped from 30k a week to 90k.

I don't care either way if the tax thing is added. I'm just playing devil's advocate.

I read recently that a player on £30k per week (IIRC, it was an average top division wage anyway) in Spain will save £10m over the course of a 5 year contract compared to England due to the tax breaks they get there.

If you don't think that features in their thinking, you're vastly overestimating the morals of the average professional footballer.

it probably does feature in a players thinking but since tax rates change you cant replicate that in the game.

The tax rates in the game would be static so some leagues would always be at a disadvantage and if you play for 30-40 seasons it would have a huge impact, when IRL it could have be more advantagous in those countries during a period that long

There's a difference between what might be and what is. Examples of players that moved to Spain, from England, for tax reasons?

It's been introduced this year so I doubt a lot of people can clear out.

Only time will how big an effect this will have over the leagues. Speaking logically though, it clearly will have an impact. Just like differences in wages do now for some players.

But it doesn't mean you only pay 20% on the First 30k, then 40% on the Next 120k and %0% over that threshold. if your lucky enough to earn 150k then your wage will be 75k ( then theres national insurance:rolleyes:) Not applicable to foreign workers))

And then they stick another 2p on fuel!!!!

Yes it does, the explanation given to you was correct, you only pay the higher tax rate for any income over the upper limits, so if someone earned £200,000, then they would pay 50% on £50,000, being the amount between £150,000.01 and £200,000, the other earnings are taxed at the 10%, 20% and 40% rates.