Sir Lewis Hamilton was bestowed with the prestigious Knighthood back in 2021 after former British Prime Minister Boris Johnson recommended his name. In doing so, Hamilton was able to save around $10,000,000 in tax money, with his residence coming between the title, as reported by Business F1.
Hamilton made his F1 debut in 2007, but moved to Switzerland very soon, to escape the high taxes he would have had to pay had he stayed home. In Switzerland, Hamilton had to pay 5% of his income as tax.
However, after Switzerland increased their tax percentage, Hamilton moved to Monaco where he had to pay no taxes whatsoever. As Hamilton went on to become a legend in F1, winning seven world titles, the pressure on presenting him with a Knighthood continued to grow. Initially, he was put on the list in 2020. But because of his residency status, Hamilton had to wait a whole year to get his Knighthood.
Boris Johnson saved around $10 million for Lewis Hamilton in terms of taxes
Boris Johnson, the former prime minister of the UK put Hamilton’s name up for the Knighthood. But, it had to be delayed after fellow Britons made an issue of Hamilton’s living status in the UK. The pressure was on Hamilton to return to the UK in order to receive the Knighthood. Thankfully for him, Boris Johnson helped him out. As a result, the seven-time world champion could stay back in Monaco, and save as much as $10,000,000 a year.
On this, Business F1 reported, “Boris Johnson, then prime minister relented. Which meant Hamilton would not have to return to Britain [to receive the Knighthood], saving him as much as $10 million a year.”
This was also possible because of Hamilton’s PR team. They convinced the politicians and people back home, that Hamilton did contribute to the British economy by paying certain taxes on earnings that came from racing activities in the UK.
Does Hamilton pays tax in the UK?
Lewis Hamilton once said to the Sunday Times that he pays tax in the UK. However, he also mentioned that the UK is not the only country he races in. There are several other countries where he travels to every single year to race.
Therefore, he pays performative taxes to every nation he races in. Furthermore, he also mentioned how he helps a team, which has more than 1000 employees, with his income.
Notably, Hamilton is not the only driver who is criticized for leaving the country to save tax money. Max Verstappen, F1’s most sought-after driver in the current scenario also faced huge criticism from his countrymen after the Dutchman changed his residence from the Netherlands to Monaco.
