🔗 Share this article Higher Tax Bills for Players Could Spark Requests for Higher Wages from Teams English top-flight clubs are confronting the possibility of higher wage bills following the government’s announcement in the budget that image rights payments will be classified as earnings from April 2027. The change will leave many top-flight players with substantially higher taxation expenses, and a number of representatives have indicated that this is likely to be passed on to clubs, particularly for players who sign new contracts before the policy is implemented. Understanding the Consequences of Personal Branding Tax Changes Many players obtain branding income directed to corporate entities for commercial earnings, such as sponsorship deals and promotional earnings. From April 2027, these will be subject to the 45% top rate of income tax, rather than the company tax level of 25%. Some Premier League players recruited internationally are believed to include clauses in their contracts that hold their teams responsible for any significant changes to the UK’s tax regime, but players without such terms are likely to demand higher wages. Deal Discussions and Monetary Consequences A significant number of athletes negotiate contracts based on take-home earnings, with teams taking care of their tax affairs, a trend likely to continue. Image rights payments often constitute a substantial part of footballers' earnings, which is permitted by HMRC if the sum is considered commercially realistic and remains below 20 percent of overall income, so the increased tax liability for clubs may be significant. “With these changes, the government is guaranteeing remuneration reflects fair taxation, and providing a clearer picture of the salary expenditures fueling financial sustainability debates in the UK football scene. There will be some short-term pain as teams adapt, but in the long run this promotes greater integrity, responsibility and confidence in the economics of the game.” Government’s Move and Past Background The government’s move follows a extended crackdown by HMRC on players' income, which has recouped hundreds of millions of pounds in outstanding taxation. Image rights payments will be treated as personal earnings from 2027 onwards. Athletes may seek increased salaries to compensate for growing tax costs. Clubs confront possible increases in salary outlays as a consequence. The change aims to guarantee more equitable tax treatment for high-earning players.