Premier League clubs may soon be forced to increase wages after the UK government announced that players’ image rights payments will be treated as taxable income from April 2027.
Many top-flight players receive substantial image-rights payments through limited companies, taxed at the 25% corporation rate. Under the new rules, these payments will instead be taxed at the 45% top rate of personal income tax — leaving players with significantly higher tax bills.
Agents say players signing new deals are likely to demand higher wages to offset the increased tax burden. Some overseas players have clauses making clubs responsible for changes to tax law, while others on net-pay contracts already rely on clubs to cover their tax commitments.
Because image rights can account for up to 20% of a player’s earnings under HMRC rules, the shift could create major additional costs for clubs.
The move is part of HMRC’s ongoing effort to clamp down on football tax arrangements, having already recovered hundreds of millions in unpaid tax. Financial expert Prof Rob Wilson said the change could bring “short-term pain” but ultimately improve transparency and sustainability in the game.
