Why Image Rights Matter More Than Ever
In the modern world of professional sport, digital media, and global branding, an individual’s image can be as valuable as their skillset. For footballers, musicians, presenters, influencers, and actors, managing image rights properly is essential to maximising commercial value and protecting against unnecessary tax exposure.
Here at Shenward, our sports, media and entertainment team specialise in advising high-profile clients across sport, media, and entertainment on the correct structuring and ongoing management of image rights and image rights companies. In this article, we’ll explain what image rights are, how an image rights company works, and why professional guidance is key in this complex and ever-changing area.
What Are Image Rights?
Image rights refer to an individual’s right to control the commercial use of their name, likeness, voice, signature, and other aspects of their personal identity. In the UK, unlike in some other jurisdictions, image rights are not a standalone legal concept — but can be protected and commercialised through:
- Intellectual property law (e.g. trademarks)
- Passing off and misrepresentation
- Contractual arrangements
- Licensing agreements
For athletes and celebrities, these rights are often exploited through sponsorships, endorsements, media appearances, merchandise, and social media deals.
What Is an Image Rights Company?
An image rights company (IRC) is a private limited company that holds and manages the commercial rights to an individual’s image. The individual (e.g. a footballer or actor) licenses or transfers their image rights to the company, which then enters into agreements with third parties — such as clubs, brands, or sponsors — for the use of those rights.
This structure can offer:
- Efficient tax planning
- Greater commercial control
- Asset protection
- Limited liability for image-based income
Who Can Benefit from an Image Rights Company?
You may benefit from an Image Rights Company if you are:
- A professional athlete (e.g. footballer, rugby player, boxer, cricketer or olympian)
- A TV personality or presenter
- A social media influencer with sponsorship deals
- A musician, DJ or performing artist
- A film or theatre actor
- A public figure with significant brand value
In all cases, it’s essential that your image has a commercial value separate from your employment or service role. That’s where expert advice becomes critical.
HMRC & Compliance: What You Need to Know
In recent years, HMRC has increased its scrutiny of image rights arrangements, particularly where IRCs are used to divert what is essentially employment income. Clubs and individuals alike have faced audits and investigations when HMRC believes image rights have been misused.
To comply:
- The image rights must be genuinely exploitable and separate from employment services
- There must be real commercial activity — e.g. third-party licensing deals
- Payments must be made at arm’s length market value
- Proper legal documentation and valuation are essential
Our team are here to help you navigate these risks with robust structuring, documentation, and regular reviews.
Our Services: How We Support You with Image Rights
Our team has deep experience supporting clients in the sports, entertainment industry, and digital media. Our image rights services include:
Feasibility Review
We assess whether your image rights meet the criteria for commercial exploitation and advise on potential value and risks.
Incorporation & Structuring
We set up your image rights company in a compliant, tax-efficient way — ensuring the right shareholding, governance, and licencing agreements are in place.
Commercial Contracts & Licensing
We prepare and review licensing agreements between your IRC and third parties (e.g. football clubs, brands, agencies).
Ongoing Tax & Accounting Services
From VAT to corporation tax, we manage all accounting aspects of your IRC, including annual filings, bookkeeping, and tax returns.
Audit Support & HMRC Defence
If HMRC comes knocking, we can represent you, respond to queries, and defend your arrangements.
Valuation Services
We provide independent image rights valuations to support the legitimacy of payments and licensing deals.
Common Misconceptions About Image Rights
❌ “Anyone can set up an image rights company.”
Not true. HMRC expects a clear, legitimate basis for doing so — and evidence that your image is commercially valuable. If you don’t have third-party endorsement deals or licensing arrangements, you may not qualify.
❌ “It’s just a way to save tax.”
While IRCs can be tax-efficient, they must be set up and operated properly — with real commercial activity and full compliance. If not, you risk penalties and backdated tax.
❌ “The club takes care of it.”
While clubs may offer image rights payments, you are responsible for your own tax and company compliance. Professional advice ensures you stay on the right side of the law.
Recent Trends in Image Rights (2024–2025)
Want to know what’s hot in the world of image rights? Take a look at our quick glance trends for this year below.
- Increased HMRC audits in football and rugby
- Growing use of image rights companies by influencers
- More global brand collaborations needing structured licensing
- AI-generated likenesses raising new legal questions about digital image rights
- Stronger enforcement around transfer valuations and separation of services
Why Choose Shenward?
We’re not just accountants — we’re strategic advisers with real-world experience supporting elite athletes and talent. Our team combines tax expertise, commercial insight, and regulatory knowledge to ensure your image rights structure works for you — and with HMRC.
✔️ Trusted by leading sports agents
✔️ Specialists in UK and international image rights
✔️ Full-service accounting and tax team
✔️ Transparent, proactive advice
✔️ Discreet and relationship-driven
Did you know?
We also offer Family Office Services. Take a look here at how this can support you.
Get In Touch
If you think your image could have commercial value, or you already have brand deals that aren’t structured tax-efficiently, we’re here to help.
📞 Book a confidential call with our sports, media and entertainment team today
📩 sherad@shenward.com
