Premier League clubs may face higher wage costs after the UK government announced that image rights payments will be taxed as income from April 2027.
Currently, many players receive a portion of their earnings through image rights paid into limited companies, taxed at the 25% corporate rate. Under the new rules, these payments will be taxed at the 45% top income tax rate — leaving players with larger tax bills.
Agents say many players will expect clubs to compensate for the difference, particularly in new contract negotiations. Some foreign players have clauses requiring clubs to cover major tax changes, while others may demand higher wages to maintain their net pay.
Image rights can legally make up as much as 20% of a player’s total earnings, meaning the financial impact on clubs could be substantial.
The change continues HMRC’s years-long crackdown on football tax arrangements. Experts say the move will cause short-term financial strain but ultimately improve transparency and financial integrity across English football.
