Premier League clubs are expected to face increased wage costs after the UK government announced that image rights payments will be taxed as income from April 2027.
Many top-flight players currently channel commercial earnings — such as sponsorship and advertising income — through limited companies, which are taxed at the corporate rate of 25%. Under the new rules, those payments will instead be subject to the 45% top income tax rate.
Agents say players will seek compensation for the higher tax burden, meaning clubs are likely to absorb the increase through larger wages. Some foreign players reportedly have clauses requiring clubs to cover major tax changes, while others negotiate deals based on net pay, putting the responsibility on clubs to settle their tax liabilities.
Image rights often make up as much as 20% of a player’s total earnings — the maximum HMRC permits — meaning the financial hit could be significant across the league.
The move is part of a broader HMRC crackdown that has already recovered hundreds of millions in unpaid tax from footballers. Finance expert Prof Rob Wilson said clubs may feel “short-term pain” adjusting to the changes but argued that the reform improves transparency and supports long-term financial sustainability in English football.
