The news that Chancellor Rachel Reeves has increased the rate of employer’s national insurance rate from 13.8% to 15% will have a direct impact for West Ham and other Premier League clubs.
Employers NI is now paid by clubs on all employees that earn over £5,000 per year.
The contributions do not come out of the employee’s salary but are paid on top of that. Employers do not currently pay NICs on payments they make into their employees’ pension pots.
With an annual wage bill close to £150,000,000 this season that means West Ham will need to find an additional £1.8m in tax to pay to the treasury.
Business lobby groups have said they will face higher day-to-day running costs that could force them to cut back elsewhere.
With the full year’s club budget already fully committed this means the cost of this additional tax will need to be found from savings or cuts elsewhere.
“With an annual wage bill close to £150,000,000 this season that means West Ham will need to find an additional £1.8m in tax to pay to the treasury.”
😱😱😱😱 £1.8m!!!!!!
We’re doomed!!!!
‘Massive Shock’ 🤔
🤣🤣🤣🤣🤣🤣🤣
We’ll simply have to sell Kudus and Bowen to cover this. Without question we will need to raise season ticket prices again. Any more concessions we can cut?
It’s the only way, unfortunately.
Can we let Rodriguez leave on a free in Jan 🤔 He won’t be missed but his £80k p/w wages will cover it.
Sullivan can always Do what anyone sensible knows . Sell up or vastly reduce you’re stake to someone that has the finances to push the club on ..
My heart bleeds for multi millionaire Premier League club owners
Business owners will be doing their calculations right now and will be planning what they are going to do. Reduced or no pay rises. Redundancies. Cancelling of investment. There’s more than one way of taking your money off you. I expect that Lady Brady is on it right now…
I think the biggest bill will be the £450 tax on each private jet passenger. Timmy’s expenses will go through the roof!
Tim will be flying new signings on Ryanair now ✈️🤣🤣
It’s a bit of a finger in the air assumption to assume a cross the board 1.2% or £1.8m increase in costs. Remember that not all employees are full time. If you include staff employed by the club only on match days they will never reach the £5k. Working 7 hours for 19 home games at £13ph you only get £1729 a year, so ni is way below the £5k threshold
Anyway, every business in the country is probably affected so this is a very “non story”. They’ll just reduce staff numbers or put up prices or stitch customers up somehow
I’m really more concerned that David Sullivan is responsible for us not getting Amorim & Duran and appointing Lopetegui & Fullkrug instead.
Dump Paqueta and save 8 million a year .
C’mon Sean. I’m no great fan of this particular policy – it would have been easier, simpler and more honest if Labour had just admitted the Tories previous NIC cuts were unaffordable, and undone them. But the idea that this is going to have any significant impact on West Ham is just ridiculous. Or is Sullivan paying you for anti-Labour propaganda as well now?
An extra 1.8m a year is an absolute drop in the ocean for a football club whose monthly wage bill is many times greater than that.
Be careful. We are not allowed to criticise Sully or Brady on C&H. Well said though, we all know Liz Truss caused this issue.
Premier League clubs are hardly start ups struggling to recruit people.
Maybe we can cover the additional costs with the money made cutting the concessions? 😉
How is this a shock? It’s been all over the news for many days.
Poor old billionaire Sully 😢😢😢
Yes and the poorer Sully is the poorer West Ham are. What we need to do is fill sullys pockets so he can buy better players.
Don’t you mean a better manager