Premier League responds to allegations of backroom tax deal

The Premier League has hit back at allegations claiming the football giant has a “secret deal” with HM Revenue & Customs (HMRC).

British newspaper, The Daily Mail, said the league’s teams and stars benefit from a deal relating to image rights.

Under this agreement, the Mail said, clubs have been told they can pay up to a fifth of their footballers’ total pay packages to “image rights” companies, usually belonging to the player, rather than as a part of their wages. The players will only pay Corporation Tax at 20 per cent on this portion of their income, rather than the usual additional rate income tax band of 45 per cent.

They said the deal allows wealthy footballers to reduce their income tax bills “significantly”.

In a statement, the Premier League said the newspaper story regarding the players’ tax arrangements is neither a new development or newly reported.

They said: “The Premier League worked with HMRC to agree how to tax the small proportion of their overall income attributable to image rights. Image rights as a source of income are established and recognised in the UK and around the world, a practice that has been in place for many years.

“The tax paid by Premier League players is both substantial and transparent”

The latest available figures from the 2014/15 season reveal that £891 million was paid to HMRC by players as part of an overall contribution of £2.4 billion a year from Premier League activity.

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