Cristiano Ronaldo to get extra £1.3m after tax cuts with average top-flight pay going up £240k

Cristiano Ronaldo is set to rake in an extra £1.3million annually following the new tax and National Insurance cuts announced by the Government, according to reports.

The UK Government has revealed that the cut of the highest rate of tax will drop from 45 to 40 per cent, which will come as music to the ears of Premier League footballers.

On average, top-flight stars already collect an estimated £4million per year after tax - according to The Times - but that figure will now increase on the back of the tax cuts and national insurance changes.

One of the biggest beneficiaries of the cuts, outlined in Chancellor Kwasi Kwarteng's mini-budget, is Manchester United superstar Ronaldo - who reportedly earns £400,000 per week at Old Trafford.

Football finance author Kieran Maguire claims the Portugal captain will earn over £1million in extra net income as a result of the changes, telling i: 'Cristiano Ronaldo's take home will increase by roughly £1.3m over the course of 12 months, which is a lot of money'.

Mohamed Salah, who earns the same salary as Ronaldo at Liverpool, is also in line for an extra £1.3million over the next 12 months.

Manchester City midfielder Kevin de Bruyne takes home £385,000 per week, meaning he is set to take home an extra £924,000 annually because of the cuts.

His new team-mate Erling Haaland and Manchester United goalkeeper David de Gea are on £375,000 a week, working out as £900,000 extra with a 40 per cent tax rate.

Tottenham striker Harry Kane, on a £200,000-a-week contract, can expect an annual rise of £480,000 if he remains on the same terms.

It is believed the average Premier League player's net pay will now soar by almost £240,000 a year, making England's top-flight an even more attractive destination for overseas talent.

The Premier League already pays out the highest average salary in European football, although it does not have special tax arrangements for foreign players like in Italy and France.

Italian tax rules allow overseas players to have the first 50 per cent of their wages tax-free for five years if they have a contract for at least two years. The country's maximum tax rate is 43 per cent.

In France, foreign recruits can pay as little as 27 per cent.

Spain recently ended their tax exemptions for players and impose a top rate of 47 per cent, although this varies for different regions, while Germany's rate is 45 per cent.

Saif Rubie, a leading football agent who regularly deals with international transfers, believes the UK's tax cuts will only encourage overseas players to head to the Premier League further.

Rubie said: 'The Premier League is now the leading league in the world as far as its wealth across the board [goes] and this extra incentive with taxation I'm sure will make it more attractive.

'However in countries such as France and Italy they make even bigger allowances for foreign players coming into the league so the top clubs there can still make very attractive offers to players.'

According to research from accountants EY, Premier League players forked out £1.4billion in direct tax throughout the 2019-20 campaign.

The Government's latest cuts mean that figure is expected to drop by around £70million in the future.