Key facts
- Image rights payments linked to employment will be taxed as wages from April 6, 2028.
- The change will subject these payments to income tax and employer National Insurance Contributions.
- The delay from April 2027 to April 2028 is to allow affected sectors time to adjust.
- Clubs could face additional employer NIC costs, while higher earners may face employee NICs and income tax.
The UK government has confirmed in the Autumn Budget 2026 that image rights payments connected to employment will be taxed as employment income, similar to wages. This measure, set to take effect from April 6, 2028, provides an additional year for sportspeople, entertainers, clubs, and their advisors to prepare for the changes. Historically, image rights have been used to remunerate players in a tax-efficient manner, but HMRC has signaled its intention to close this loophole. The new rules will subject these payments to income tax and employer National Insurance Contributions (NICs), potentially increasing payroll costs for clubs and higher earners.