While the exact amount that Littler and his company would be taxed remains unclear due to brand deals and expenses, it is almost certainly over the £100,000 mark. HMRC reminded Littler in a cheeky social media post, where they wrote: “Big congrats to Luke on his fantastic run to the final. We can confirm the existence of income tax.”
However, with a further £110,000 earned since his Ally Pally heroics, his tax will have climbed over the £100,000 barrier especially when coupled with deals from the likes of boohooMAN and YouTube group the Sidemen’s Best Cereal brand.
“The exact tax position is difficult to get to because whilst we know his winnings, we do not know what else he received in sponsorship and endorsement which would also need to be added to his taxable income,” Wallace added.
“What we can say is that in his capacity as a ‘sole trader’ (pre-incorporation), his prize money at the World Championships alone made him an additional rate taxpayer of 45 per cent. However, his effective tax rate is slightly higher as people who earn over £100,000 lose their tax-free allowance of £12,570.
“We also don’t know the amount of expenses that he would have claimed which reduces his taxable profit. If you earn over £250,000, which Littler surely will be, you pay 25 per cent on all profits.”
