Anthony Joshua faces significant tax bill following victory over Jake Paul
Anthony Joshua might have walked away from Miami with a stunning victory over Jake Paul, but it turns out the taxman is about to take a massive bite out of his earnings, reports BritPanorama.
Recent research indicates that the British heavyweight fights a staggering tax bill of nearly £33 million from his £70 million share of the fight purse. Reports suggest both fighters split a combined £140 million pot from their December clash at the Kaseya Center in Florida, making it the most lucrative bout of Joshua’s career.
As a UK resident engaged in a fight on American soil, Joshua is subject to taxation from both jurisdictions. The Internal Revenue Service (IRS) takes precedence, claiming £25.9 million of Joshua’s earnings due to a top federal income tax rate of 37 per cent. While Florida does not levy a state income tax, the federal take is still considerable.
However, Joshua’s tax obligations do not end there. Being a resident in the UK means he is liable for tax on his worldwide income at a top rate of 45 per cent. Fortunately for Joshua, he will not face double taxation; HM Revenue & Customs (HMRC) charges the difference between what he owes the UK government and the amount already settled with the US tax authorities.
After balancing these fiscal obligations, Joshua is expected to pay £5.6 million in UK taxes, in addition to around £1.4 million in National Insurance contributions, culminating in total UK obligations of approximately £7 million.
When all is calculated, Joshua walks away with £37.1 million post-tax. Although this figure resonates as a significant sum, it represents only 53% of his earnings from the bout. To underscore this, the £5.6 million owed to HMRC could fund 229 entry-level NHS nurses, 167 trainee firefighters in London, or employ 150 individuals earning the average UK salary of £37,430.
It’s striking how even in victory, external pressures can so dramatically reshape the spoils of success, capturing a nuanced reality about the intersection of wealth, sport, and civic duty.
