Premier League clubs may soon be forced to increase player wages after the UK government confirmed that image-rights payments will be taxed as income from April 2027.
Many top-flight players currently receive part of their earnings through image-rights companies, which are taxed at the 25% corporation rate. Under the new rules, those payments will instead be taxed at the 45% top rate of income tax, significantly increasing players’ tax burdens.
Agents say players signing new deals are likely to demand higher wages to offset the change. Some foreign players already have contract clauses requiring clubs to cover major shifts in tax policy, while others who negotiate based on net pay are also expected to seek compensation.
Image-rights payments can legally account for up to 20% of a player’s total earnings, meaning the change could add substantial costs for clubs.
The adjustment follows HMRC’s wider crackdown on footballers’ tax arrangements, which has already recovered hundreds of millions in unpaid tax. Finance expert Prof Rob Wilson said the reform may initially be painful for clubs but will ultimately improve transparency and financial integrity across English football.
