Premier League clubs are bracing for higher wage costs after the UK government announced that players’ image rights payments will be taxed as income from April 2027.
Currently, many players receive a portion of their earnings through image rights companies, which are taxed at the 25% corporation rate. Under the new rules, these payments will instead be subject to the 45% top rate of income tax — leaving players with significantly larger tax bills.
Agents say many players will expect clubs to compensate for the increased tax burden, especially when negotiating new contracts before the rule takes effect. Some foreign signings already have clauses requiring clubs to cover major tax changes, but most others are likely to demand higher wages to maintain their net pay.
Because image rights can legally make up as much as 20% of a player’s total earnings, the financial impact on clubs could be substantial.
The change comes amid HMRC’s ongoing efforts to tighten scrutiny of footballers’ earnings, which has already recovered hundreds of millions in unpaid tax. Professor Rob Wilson of Sheffield Hallam University said the shift will create “short-term pain” but ultimately increase transparency and financial stability in English football.
