Treasury committee pressures HMRC over Manchester City tax probe

The House of Commons Treasury Committee has written to HMRC to demand clarity on the tax implications of the Premier League’s investigation into Manchester City, which was found guilty of breaching financial rules between the 2009‑10 and 2017‑18 seasons. The league disclosed that the club used “sham contracts” with commercial partners to disguise secret funding exceeding £830 million, prompting the committee’s formal inquiry.

Committee’s questions to HMRC

Chair Dame Meg Hillier MP asked Permanent Secretary John‑Paul Marks whether HMRC is aware of the Premier League’s findings and if an unredacted copy of the report has been requested. She also sought an overview of HMRC’s work on taxation of remuneration and any potential tax avoidance within football clubs, stressing the public interest at stake.

Tax expert’s allegations

Tax specialist Dan Needle, writing for Tax Policy Associates, suggested the club may have evaded £12 million in UK tax. He cited leaked documents that identify former manager Roberto Mancini as the beneficiary of payments routed through a consultancy called Sparkleglow Holdings Ltd, arguing the arrangement should have been subject to PAYE income tax and National Insurance.

Needle’s assessment also warned that the irregular nature of the scheme could trigger a criminal investigation, noting that the independent commission found Manchester City deliberately filed false accounts, potentially breaching the Companies Act.

Manchester City responded with a statement asserting disappointment and surprise at the Premier League Commission’s opinion. The club maintains its innocence, claiming a “comprehensive body of irrefutable evidence” supports its position and pledging to pursue all regulatory and legal avenues, including an appeal before the deadline of 2 October.

The club’s statement highlighted that the Premier League process remains ongoing, with significant elements yet to be completed, and that further comment is restricted until all proceedings conclude.

Sport Phil Cardy, senior reporter, recorded the developments at 19:06 on 1 October 2026, noting the inclusion of three images accompanying the report.