This year's Wimbledon Championships will see singles champions take home £3million each, whilst even first-round exits will pocket £66,000. The total prize fund represents a seven per cent rise from 2024.
According to tax advisory firm Blick Rothenberg, the increased payouts spells good news for the Treasury, with prize money at the prestigious grass court tournament has doubled over the past decade.
"While most of the players at Wimbledon will not be tax resident in the UK, the tax rules applying to international sports people mean that they will be fully taxable in the UK on their winnings," explained Robert Salter, director at Blick Rothenberg. The firm has characterised the prize money surge as "a win for HMRC".
International players competing at SW19 face significant tax obligations despite not being UK residents. Tournament organisers must withhold tax at 20 per cent on prize money, but this represents just the beginning of players' liabilities.
Novak Djokovic will be looking to win a record 25th Grand Slam
ReutersWith first-round losers earning £66,000 - well above the £50,000 threshold for higher rate tax - most competitors will owe additional payments. Players face the 40 per cent tax band on their winnings, meaning they must submit annual tax returns to settle the difference.
"Most players including those individuals with little or no image right income, will be obliged to submit an annual tax return and pay the additional tax which is due," Salter noted. This applies to the record number of British wildcards competing this year.
JUST IN: Emma Raducanu makes honest admission on Carlos Alcaraz relationship ahead of US Open doubles
Players' tax obligations extend beyond their tournament winnings. They must also declare earnings from UK-specific sponsorship appearances and a portion of their global image and marketing fees.
"As well as any additional UK-specific fees which they might get while in the UK for appearing at specific events for sponsors and a share of their wider image and marketing fees," Salter explained. These additional income streams are fully taxable under regulations governing international sports professionals.
READ MORE: Lando Norris replaced ahead of Austrian Grand Prix as McLaren make huge decision
Carlos Alcaraz recently won Queen's and will be looking for the same success at Wimbledon
PAThe tax rules ensure that visiting athletes contribute to UK coffers on all earnings generated during their time in the country. This includes promotional activities, media appearances and endorsement deals specifically tied to their Wimbledon participation.
Such comprehensive tax obligations mean players' actual UK tax bills often significantly exceed the initial 20 per cent withheld by tournament organisers.
LATEST SPORTS NEWS:
The broader implications for Treasury revenues extend beyond tennis. Wimbledon joins other major sporting events in delivering substantial tax income to HMRC.
"Leading professional events such as Wimbledon, or the Open Championship in July, aren't just a 'win' for sports fans, they are a win for the HMRC's coffers too," Salter concluded. The golf championship represents another lucrative opportunity for tax collection from international athletes.
Emma Raducanu will be looking to bounce back after a difficult few weeks
ReutersThese marquee sporting events create a reliable revenue stream for the Government. With prize money continuing to rise across major tournaments, HMRC stands to benefit from increasingly substantial tax receipts.
The combination of higher prize funds and comprehensive tax rules for international sports professionals ensures that prestigious UK sporting events contribute significantly to public finances.
Most Read
