🔗 Share this article Higher Tax Bills for Players May Lead to Requests for Increased Salaries from Teams Premier League clubs are confronting the possibility of increased salary costs after the government’s announcement in the budget that image rights payments will be classified as earnings from April 2027. This adjustment will result in many elite footballers with significantly larger tax bills, and several agents have said that these costs are expected to be transferred to teams, particularly for athletes who agree to fresh deals before the measure takes effect. Understanding the Consequences of Image Rights Taxation Numerous footballers receive image rights paid to limited companies for commercial earnings, such as endorsement agreements and promotional earnings. From April 2027, these will be subject to the highest band of income tax, rather than the company tax level of 25%. Certain top-division athletes recruited internationally are understood to have clauses in their contracts that hold their teams responsible for any significant changes to the Britain’s taxation system, but those who do not are likely to demand increased pay. Contract Negotiations and Financial Implications A significant number of athletes negotiate contracts based on take-home earnings, with clubs managing their tax obligations, a trend expected to persist. Branding income often constitute a substantial part of players’ salaries, which is permitted by HMRC if the amount is deemed commercially realistic and does not exceed 20% of total earnings, so the higher tax burden for clubs may be significant. “Under this new policy, the government is ensuring remuneration aligns with fair taxation, and giving a more transparent view of the wage bills fueling economic viability discussions in the UK football scene. There will be some short-term pain as clubs adjust, but in the future this promotes greater honesty, responsibility and trust in the economics of the game.” Government’s Move and Past Background This official step follows a long-running clampdown by the tax office on players' income, which has recouped vast sums of money in outstanding taxation. Personal branding income will be taxed as income from April 2027. Athletes could demand increased salaries to offset rising tax bills. Teams confront possible increases in wage expenditures as a result. The change aims to guarantee more equitable tax treatment for high-earning players.