Henderson braced for £3m bill from tax man if he quits Saudi Arabia

Midfielder’s £350,000-a-week contract was signed on tax-free basis, that is only held up if he stays in Saudi Arabia for at least two years

Jordan Henderson will risk having to pay more than £3 million in taxes back to HMRC should he return to the Premier League in January and end his five-month stint in Saudi Arabia.
The former Liverpool captain is open to leaving Al-Ettifaq in the Saudi Pro League after half a season, although he will be liable to pay a tax bill on wages thought to be worth £350,000 a week by returning to England before 2025.
Under current tax laws, those leaving the United Kingdom to work abroad must remain out of the country for a full tax year or pay 45 per cent on their earnings if they return before. It means Henderson would be taxed on his current wages by returning to the Premier League.
Henderson, 33, has always insisted his move to the Middle East was not about money. One scenario that could see him keep his net salary would be to find another European club rather than return to the Premier League, which would ensure he was abroad for the full financial year.
While the SPL has meant some players hitting the jackpot with wages, it is not a quick fix and requires almost two years out of the country rather than picking up a salary for a season and returning home. This has applied to managers too, with Nuno Espirito Santo spending just 16 months at Al-Ittihad and is now back in the Premier League with Nottingham Forest.
Telegraph Sport revealed this little-known tax rule earlier this season when players were considering lucrative offers to play in the SPL. “Essentially, you need to be out of the country for a complete tax year,” said tax expert Elliott Buss, a partner at UHY Hacker Young. “You need to start the clock in April 2024. It is not very well-known but is a question that arises a lot with sports people going abroad to play, such as rugby players going to Japan.
“They are allowed to return back to the UK to see family as long as it does not exceed 91 days in a tax year. So it depends how long the season is and they need to be careful when they are coming back to remain having their tax-free status.”
To get the full tax-free amount, players would need to “break UK tax residency” and become a Saudi resident to be under their zero per cent tax.
A previous case where a player was chased for tax came in Italy where Mirko Vučinić, the former Juventus player, was successfully pursued for €5.85 million (£5.32 million) from the Italian authorities for earnings while playing for Al Jazira in Abu Dhabi. It was successfully argued he never broke Italian residency while he played in the Middle East.
Henderson’s move to Saudi Arabia prompted condemnation from LGBT+ groups who claimed he had “lost the respect” of a community he championed.
Pride in Football, a network of LGBT+ fan groups, said in a statement: “When you see someone who has been an ally so publicly transfer to a club in a country where LGBT+ people are attacked and imprisoned, it is disappointing.
“Good luck in Saudi Arabia Jordan, but you have lost the respect of so many people who valued you and trusted you.”