Premier League clubs could soon face rising wage costs after the UK government confirmed in its budget that image rights payments will be taxed as income from April 2027.
Many top-flight players currently receive a portion of their earnings through image rights paid to limited companies, taxed at the 25% corporate rate. Under the new rules, these payments will instead be taxed at the 45% top income tax rate, significantly increasing players’ tax liability.
Agents say players are likely to demand higher wages to offset the change — particularly those negotiating new contracts before 2027. Some overseas players already have clauses requiring clubs to cover any major tax increases, but many others do not.
Because many Premier League deals are negotiated on a net-pay basis, clubs often manage the tax bill directly, meaning the increased burden will fall heavily on them. Image rights can legally account for up to 20% of a player’s total earnings, meaning the financial impact could be substantial.
The change continues HMRC’s years-long crackdown on football tax arrangements, which has already recovered hundreds of millions of pounds.
Prof Rob Wilson of Sheffield Hallam University said the shift will cause “short-term pain” for clubs but will ultimately bring more transparency and financial integrity to the game.
