Premier League clubs are bracing for increased wage costs after the UK government announced that players’ image rights payments will be taxed as income from April 2027.
Currently, many players receive part 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 subject to the top income tax rate of 45%, meaning significantly higher tax bills for players.
Agents say many players will expect clubs to cover the difference, particularly those negotiating new contracts before the rule takes effect. Some foreign players have clauses that protect them from tax changes, obliging their clubs to absorb any increase. Others, especially those negotiating net-pay contracts, are also likely to push for higher salaries to offset the impact.
Image rights can make up as much as 20% of a player’s total earnings, meaning clubs could face substantial added costs.
The change comes amid HMRC’s long-running crackdown on football tax arrangements, which has already recovered hundreds of millions in unpaid tax. Experts say the shift will bring greater transparency to club wage bills and contribute to long-term financial sustainability, though clubs may face short-term strain as they adapt.
