Premier League clubs may soon face significantly higher wage costs after the UK government announced that footballers’ 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 tax rate. Under the new rules, those payments will instead be taxed at the 45% top income-tax rate — a major financial hit for high-earning players.
Agents say that players signing new deals before 2027 are likely to demand higher wages to offset the increase, and clubs are expected to absorb much of the cost. Some foreign players reportedly have contract clauses obliging clubs to cover any tax rises, meaning wage bills could climb even sooner.
Because many Premier League contracts are negotiated on a net pay basis — with clubs responsible for players’ tax liabilities — the change could add substantial new overheads. Image-rights payments can legally make up to 20% of a player’s overall earnings if deemed commercially reasonable, meaning the tax shift could affect a sizable portion of salaries.
The measure is part of HMRC’s wider crackdown on football tax arrangements, which has already recovered hundreds of millions in unpaid revenue. Finance expert Prof Rob Wilson said the reform will cause “short-term pain” but will ultimately improve transparency and financial sustainability in English football.
