Emma Raducanu’s Wimbledon earnings have made headlines, but the talented tennis star is set to see a significant portion of her prize money go to taxes. After reaching the third round at Wimbledon, Raducanu earned an impressive £152,000. However, nearly half of that amount will be claimed by the tax authorities.
According to Paul Barham, a tax partner at Forvis Mazars, Raducanu will face a hefty tax rate of 45% on her prize money, resulting in a tax liability of approximately £68,400. Additionally, as a UK resident, she will also be responsible for Class Four National Insurance contributions, which amount to 2% of her earnings, adding another £3,040 to her financial obligations.
After accounting for these taxes, Raducanu’s take-home pay will be around £80,560. It’s important to note that these calculations do not include any deductible expenses, such as travel, accommodation, or coaching fees. These costs can be subtracted from her taxable income, potentially lowering her overall tax bill.
In summary, while Emma Raducanu’s Wimbledon success brought her significant earnings, a substantial part of it will be allocated to taxes, demonstrating the financial realities that many professional athletes face.
