Budget 2026: Football players warned over looming image rights tax changes
Football clubs and players have been warned of looming changes unveiled in the Budget that will see image rights taxed like wages. Chancellor John Healey’s Budget document, released on Wednesday, stated that “the government will clarify that image rights payments related to an employment are taxable as employment income and taxed in the same way [...]
The Budget 2026 announcement has raised concerns for football players and clubs regarding potential tax changes on image rights. Chancellor John Healey's proposal suggests that image rights payments related to employment will be considered taxable as wages, taking effect from 6 April 2028 - a year later than initially planned. This could result in clubs facing additional National Insurance obligations and affecting players' income beyond their club wages.
HaysMac's Tom Wilson stated that while football has been given an extra year to adapt, the changes still pose challenges in distinguishing between a player's job and their personal brand, which can be worth millions through sponsorships, endorsements, and other commercial deals. Image rights refer to a player's intellectual property, such as image, likeness, and voice, and their commercial value is subjective.
While genuine image rights arrangements are expected to continue, clubs will need to provide clear contracts, valuations, and evidence of commercial exploitation to comply with the new tax rules. The changes will be introduced through the Finance Bill legislation in the House of Commons, and clubs should use this opportunity to review existing arrangements and prepare for the upcoming tax changes.
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