The Treasury Committee has formally reached out to the chief executive of Her Majesty's Revenue and Customs (HMRC) to request clarification on the tax ramifications stemming from the Premier League's recent investigation into Manchester City Football Club. In its correspondence, the Committee seeks to determine whether the club may have underpaid taxes and National Insurance contributions during the nine-season period in which it was found to have breached the league's financial regulations. The letter, signed by Dame Meg Hillier MP, is addressed to JP Marks, the permanent secretary of HMRC.
It asks whether the tax authority has received a full, unredacted copy of the Premier League’s investigative report and urges the department to acknowledge the significance of the matter and the public interest it generates. Hillier also requests a summary of HMRC’s ongoing work relating to football clubs, asking for "any common issues around taxation (including the taxation of remuneration) that you have found in their practices and how HMRC is tackling them." A deadline for a response has been set for Thursday, 15 October, giving the tax authority a limited window to outline its position and any planned actions.
Manchester City, for its part, continues to deny any wrongdoing and has indicated that it intends to appeal the Premier League’s verdict, a step it must take by the upcoming Friday. Background to the investigation The Premier League’s probe into Manchester City was sparked in 2018 when the German news magazine Der Spiegel published a cache of hacked internal emails. Those documents suggested that Roberto Mancini, who managed the club from 2009 to 2013, was operating under a concealed second contract.
According to the reporting, Mancini received a net salary of £1.45 million from the club, while a separate Italian‑based entity linked to him was paid £1.75 million for a four‑day annual consultancy role with Al Jazira, a club in the United Arab Emirates’ Pro League. The Treasury Committee’s inquiry, as outlined by Sky Sports News correspondent Kaveh Solhekol, emphasizes the possibility that the club may have failed to remit the appropriate amount of tax and National Insurance over the nine‑year span in which it was adjudged to have breached financial rules. The Committee’s letter explicitly asks HMRC to confirm that it is aware of the case’s importance and to reassure Parliament that the tax authority will scrutinise the club’s historical tax filings. Potential tax issues If HMRC decides to open a formal investigation, several tax‑related questions could arise.
First, the club’s payroll records would be examined to verify that income tax and National Insurance contributions were correctly calculated and paid on the salaries of players, coaching staff, and senior executives, including any undisclosed remuneration such as performance‑related bonuses or image‑rights payments. Second, the tax treatment of the alleged secondary contract with Mancini’s Italian company would be scrutinised. The key issue would be whether the £1.75 million paid to the foreign entity should have been treated as a taxable expense for the club, and whether the corresponding income was properly declared in Italy and the UK, taking into account double‑taxation agreements.
Moreover, the investigation could explore whether the club used any offshore structures or third‑party arrangements to minimise its tax liability. HMRC has previously targeted football clubs for aggressive tax planning, particularly in relation to player transfers, image‑rights companies, and sponsorship deals that may be designed to shift income away from the UK tax net. Broader implications for the sport The Committee’s request for an "overview of current HMRC work around football clubs" signals a broader concern about the transparency and fiscal responsibility of elite sports organisations. Football clubs generate enormous revenues from broadcasting rights, commercial partnerships, and match‑day income, but they also operate under complex financial regimes that can obscure the true tax position of the entities involved.
By seeking a systematic review, Parliament hopes to ensure that clubs are not gaining an unfair competitive advantage through tax avoidance, and that the public purse is protected. The public interest in this case is heightened by the fact that Manchester City is one of the wealthiest clubs in the Premier League, backed by significant private investment. Any finding that the club has underpaid taxes could provoke a wider debate about the role of wealthy owners in the English game and the adequacy of existing tax legislation to capture the financial realities of modern football.
Next steps and timeline HMRC is expected to respond by the 15 October deadline, outlining whether it has received the full Premier League report and what, if any, investigative actions are planned. Should the tax authority decide to pursue a case, it would likely issue a formal notice to the club, requesting detailed financial records for the relevant nine‑year period.
The club would then have the opportunity to respond, and any dispute could ultimately be resolved through the tax tribunal system. Meanwhile, Manchester City must file its appeal against the Premier League’s sanction by the stipulated Friday deadline. The outcome of that appeal could influence the scope of any tax investigation, as a successful overturn of the footballing verdict might reduce the pressure on HMRC to act, whereas an upheld sanction would reinforce the Committee’s concerns.
In summary, the Treasury Committee’s letter to HMRC underscores a growing parliamentary focus on the intersection of sport, finance, and taxation. By asking for confirmation that the tax authority is "seized of the importance of these issues and the public interest in the case," the Committee is signalling that any potential tax shortfall by Manchester City will be examined closely, with possible ramifications for the wider football industry.