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.
