Budget changes could see footballers taxed extra £45m per year

Football players and clubs are set to pay an extra £45 million annually in tax following changes to image rights, announced during the recent Budget. Chancellor John Healey revealed that image rights payments associated with employment will now be taxed as income, similar to wages. The new rule takes effect on April 6, 2028, impacting advertisements featuring players in their club colors as part of their football income.

Additionally, two players involved in the same sponsorship deal could face different tax treatments based on the club's involvement. Research by accountancy firm UHY Hacker Young suggests this could generate an additional £45 million for the government. This tax change will significantly affect football clubs' wage bills, as many major clubs have fragile profitability.

Accountant Elliott Buss noted that the rules do not accurately reflect footballers' personal brand growth and attach too much importance to the club's role and brand. However, many footballers have built genuine personal brands over years, and the new rules may be seen as unfair by both players and clubs. HMRC is also hiring hundreds of new compliance officers to monitor players' social media and other open sources to ensure maximum tax collection.