Increased tax bills for players may lead to demands for higher wages from clubs

Image rights payments to be taxed at 45% from April 2027

Some players already have clauses making clubs liable

Premier League clubs are facing the prospect of higher wage bills after the government’s announcement in the budget that image rights ­payments will be treated as income from April 2027.

The change will leave many ­top-flight players with significantly larger tax bills and several agents have said that is likely to be passed on to clubs, particularly for players who sign new contracts before the measure takes effect.

Many players receive image rights paid to limited companies for commercial earnings, such as sponsorship deals and advertising income. From April 2027 these will be subject to the 45% top rate of income tax, rather than the corporate tax rate of 25%.