Teenage darts sensation Luke Littler is set to lose almost half of his historic £1 million prize money to tax and other deductions, highlighting the significant hidden costs faced by top players.
The Hefty Tax Bill on a Million-Pound Win
After successfully defending his PDC World Darts Championship title with a dominant 7-1 victory over Gian van Veen on Saturday night, 18-year-old Littler became the first player to receive the tournament's £1 million top prize. However, the financial reality is starkly different from the headline figure.
According to tax expert Nicole Zalys, founder of The London Accountant, Littler's massive win will be subject to a 45 per cent income tax rate due to his substantial earnings in 2025. This translates to an immediate deduction of £450,000. On top of this, as a self-employed sports star, he must pay National Insurance contributions at 2 per cent on income above £50,270, adding roughly £20,000 to his bill.
Hidden Fees Beyond the Taxman
The substantial tax cut is a potent reminder of warnings from former darts professional Paul Nicholson, who has long stated that life on the professional circuit is "not luxurious". Writing for Sporting Life in 2023, Nicholson detailed the numerous levies that erode prize money.
He highlighted the PDPA (Professional Darts Players Association) levy of 2 per cent on all prize money. Furthermore, management fees take a significant chunk. Nicholson revealed that from his own experience, he gave his manager 20 per cent of all income from sponsorships and exhibition work. When combined with the tax bill, these fees mean Littler will part with close to £470,000 of his £1 million payout.
The Realities of Professional Darts
Nicholson, a Players' Championship winner in 2010, painted a picture of the profession that contrasts with its glamorous public image. "All I do is play darts, travel, pack suitcases and practice when I get home," he wrote, emphasising the grind behind the occasional big paydays.
For Luke Littler, the next opportunity to earn comes quickly. He is confirmed to compete in the Premier League starting in February, alongside rivals Luke Humphries, Gian van Veen, and Michael van Gerwen, where he will begin his defence of yet another PDC title.