Image Rights - change of tax policy
Printed From: Scarlet Fever Llanelli Rugby Sport Wales Tickets
Category: RUGBY
Forum Name: GENERAL RUGBY
Forum Description: Other rugby chat
URL: https://scarletfever.org/forum/forum_posts.asp?TID=48472
Printed Date: 27 March 2026 at 4:47am
Software Version: Web Wiz Forums 12.04 - http://www.webwizforums.com
Topic: Image Rights - change of tax policy
Posted By: Wil Chips
Subject: Image Rights - change of tax policy
Date Posted: 05 December 2025 at 6:29am
|
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? |
Replies:
Posted By: RR1972
Date Posted: 05 December 2025 at 6:55am
| pretty sure twx isn’t devolved. will certainly hit footballers in the prem lge |
Posted By: Wil Chips
Date Posted: 05 December 2025 at 6:57am
Cheers. |
RR1972 wrote:Posted By: Eastern outpost
Date Posted: 05 December 2025 at 8:58am
|
Thanks Wil. Scarlet fever continues to amaze with its snippets of info not necessarily found elsewhere. I’ve attended several Budget analysis sessions and no one has really mentioned it because of its niche application. Bad news indeed and not mentioned in Rachel’s speech. More unmentioned items, maybe some of serious nature, will seep out over the next week or so.
------------- In a world where you can be anything – Be Kind. |
Posted By: RR1972
Date Posted: 05 December 2025 at 10:32am
| don’t sports people get a tax break in the republic of ireland to? |
Posted By: Paul10
Date Posted: 05 December 2025 at 10:37am
|
Yes. Sports people and entertainers have a tax break in Ireland. Also no VAT on sports events. Both good for Irish rugby
|
Posted By: KID A
Date Posted: 05 December 2025 at 10:56am
I think Jonny Sexton got around €1.5m in tax returns when he finished playing. Not a bad retirement present. |
Posted By: Tov
Date Posted: 05 December 2025 at 11:31am
In France the employer has to pay 30% of the total remuneration for social security. Part of the explanation for the huge budgets.
|
Posted By: KID A
Date Posted: 05 December 2025 at 11:48am
The huge French budgets are income not expenditure. |