HMRC has been sent urgent tax questions over the Manchester City breaches case. Treasury Committee Chair Dame Meg Hillier MP has written to JP Marks, Permanent Secretary of HMRC, "about any tax implications of the Premier League’s investigation into Manchester City Football Club Ltd".
Premier League report findings
On Tuesday, the Premier League published a report which said that "well over 100 individual breaches of the Premier League Rules across the course of many seasons" have taken place - some of them covering manager Pep Guardiola's time at the club.
Dame Meg Hillier has now asked for reassurance that the department is 'seized of the importance' of the case and posed a number of questions to Mr Marks. These include whether HMRC is aware of the findings and if an unredacted copy of the report has been requested by the department. The Chair "also asks for an overview of HMRC work around the taxation of remuneration and any other potential tax avoidance within football clubs", the committee said today.
Letter to HMRC
The chair of the Treasury Committee said: "While I acknowledge that taxpayer confidentiality may inhibit what you can disclose, I would welcome reassurance from HMRC that you are seized of the importance of these issues and the public interest in the case."
The letter in full, viewable here, says: "Dear Mr Marks, You will be aware of the recent publication of the Premier League’s Independent Commission’s Core Decision on its investigation into Manchester City Football Club Ltd."
It continues: "That Core Decision, regarding 'well over 100 individual breaches of the Premier League Rules across the course of many seasons', contains the following findings: 'In essence a significant part of the remuneration that we find was payable by the Club to [redacted] in return for the services that [redacted] was contracted to provide to the Club [redacted] a) Was not recorded in [redacted] employment contract (or elsewhere) as a liability of the Club or as being payable by the Club, but b) Was instead recorded in a Consultancy Agreement between [redacted] and [redacted]. The [redacted] thus concealed the true extent of the Club's liabilities for [redacted].'"
The letter adds: "The Commission found that the Club 'utilised devices' (such as the above) 'to disguise the true extent of certain Club liabilities', which were found to be 'shams and/or did not reflect the economic substance of the arrangements that in fact existed.' Can you confirm to the Committee that HMRC is aware of these findings (pending appeal)? Have you asked for, and/or been provided with the unredacted version of this report?"
Appeal and response deadline
City are expected to lodge an appeal against the guilty verdict before Friday’s deadline, having claimed the commission’s decision contained "clear material errors, of law, principle and fact, and is unsafe". The club continues to deny any wrongdoing. They have until October 2 to submit an appeal.
The letter also requests "an overview of current HMRC work around football clubs" and asks for a reply by Thursday 15 October 2026.
