Image Rights - change of tax policy

One of the things that went a little under the radar in the budget was a change of policy around 'Image rights' from April 2027.

Disclaimer here:-
Many will have little sympathy for the impact of this policy - I'm posting it as it's a tangible change to the cost base of employing a player, and impacts a players earnings...also makes player attraction a little more challenging ( if it wasn't challenging enough already).

The existing guidance is that players, particularly the higher earners, foreign players etc can have circa 20% of their contracted earnings allocated to 'Image rights'...which in turn attracts a lower tax rate (20-25%) snd is exempt from National Insurance.

So it's common nnder the current system for clubs contract a player’s image rights company for commercial services, that income is excluded from PAYE & NIC, but instead the players Image Right company pay corporation tax of between 20-25 per cent.

So contract salaries are pitched with this in mind...i.e. 20% of a players contract are allocated to the players separate Image Rights company...lowerign the tax burden for both the player and the club.

The changes from April 2027 -

Employee and Employer National Insurance will be applied to those Image rights earnings (15%)

PAYE policy will apply as if normal earnings...(up to 45%)

In effect Image Rights will cease to have any tax advantages.


Net impact...
...employers costs go up...
...players net pay goes down...
...clubs in France look very attractive (comparatively)

Footnote...
I've not been around long enough to know whether this sort of thing is a devolved policy i.e Wales can treat it differently...it certainly applies in England from April 2027.

Anyone in the know on that?

RR1972 wrote: pretty sure twx isn’t devolved

Cheers.

don’t sports people  get a tax break  in  the republic of ireland to?

Edited by RR1972 - 05 December 2025 at 10:32am

Paul10 wrote: Yes. Sports people and entertainers have a tax break in Ireland. Also no VAT on sports events. Both good for Irish rugby

I think Jonny Sexton got around €1.5m in tax returns when he finished playing. Not a bad retirement present.

Tov wrote: Paul10 wrote: Yes. Sports people and entertainers have a tax break in Ireland. Also no VAT on sports events. Both good for Irish rugby  In France the employer has to pay 30% of the total remuneration for social security. Part of the explanation for the huge budgets.

The huge French budgets are income not expenditure.