HMRC recovers £110m from football tax probes

HMRC recovered an additional £110m in tax from the UK football industry during the year to April, according to new data. The figure was generated through 68 investigations opened across players, clubs and agents, a reduction from the 118 cases conducted in the previous accounting period. The information was obtained through freedom of information requests by accounting firm UHY Hacker Young.

The breakdown of the recovery shows that 40 investigations against players yielded an extra £13m in tax. Eleven cases involving clubs resulted in an additional £87m, while 17 probes into agents generated £10m, a significant increase from the £2m collected in the prior year. This activity occurs against a backdrop of heightened scrutiny following an independent panel finding Manchester City guilty of over 100 finance-related charges lodged by the Premier League.

The Commons Treasury Committee has written to HMRC chief JP Marks CB regarding potential retrospective reviews of Manchester City’s financial position. In response, the tax authority stated that taxpayer confidentiality prevents specific comments on ongoing investigations. However, the Permanent Secretary reassured the committee that HMRC works constructively with football bodies and takes action when information indicates potential tax risks.

Elliott Buss, partner at UHY Hacker Young, noted that professional football has a long history of arrangements designed to avoid or evade tax. He suggested that while HMRC subjects the industry to significant scrutiny, it is doubtful they catch all irregularities. Buss added that agents’ fees have become a primary target, with the tax authority looking closely at cases of evasion as substantial sums are paid to intermediaries.

An HMRC spokesperson stated that the organisation aims for everyone to pay the legally due tax regardless of their status. The authority continues to work with the football industry to ensure correct tax payments are made. Separately, legislative changes are set to tax image rights payments as employment income from April 2027.