Great news for them and I'm pleased that they've got it all sorted out. Hate smaller clubs going under while the rest drain the coffers from above.
http://www.bbc.co.uk/sport/football/51207894
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Great news for them and I'm pleased that they've got it all sorted out. Hate smaller clubs going under while the rest drain the coffers from above.
http://www.bbc.co.uk/sport/football/51207894
I've never understood why the HMRC haven't closed this tax loophole. So many clubs have had winding up orders against them but they are rarely successful.
Football clubs shouldn't be exempt from paying their taxes on time and they often fail to do so because they've allowed their finances to spiral out of control.
Not really a loophole. Winding up is a mechanism for securing the payment of a debt. It ceases to have any application when the debt is paid.
The club will also face penalties and interest for late payment.
I meant not paying their taxes on time is a loophole.Quote:
Originally Posted by KerrAvon
It shouldn't be beyond the wit of the HMRC to ensure payments are received before it becomes a major problem.......but it apparently is.
What winds up (pun intended) HMRC are the CVA provisions for football clubs - not that this is relevant in Southend's case.Quote:
Originally Posted by mellowmiller
HMRC used to be preferential creditors in insolvencies (they got first dibs on the remains of the company)
Since 2003 that has not been the case - they became unsecured creditors.
To make matters worse, for HMRC and other creditors, the league have a "football creditors rule". Put simply - football creditors (e.g. the league, other clubs, players) have to be paid first in an insolvency event. If that rule is broken the club cannot continue in the league. So - pay your footie mates first or cease to exist. This "loophole" has meant that the footie debts have been paid first to the detriment of HMRC and other creditors. HMRC, understandably, don't like it and so they invariably vote against CVAs. They have also challenged the ruling, unsuccessfully.
From 6 April this year HMRC should regain preferred creditor status. I say "should" because business doesn't like it and have challenged it - I'm not sure how that went.
I don't know if HMRC's new status will trump the "football creditors rule" though
Thanks for reminding me about the football creditors rule Wrinkly, I'd forgotten about that.Quote:
Originally Posted by wrinkly
It does seem incredible that HMRC aren't first in line as preferential creditors and surely it shouldn't be for football clubs to decide such priorities.
This may be naive but, as income tax is presumably collected on a monthly basis from the players, then why don't the clubs have to pay it to HMRC in a similar timeframe?
Maybe we could offer a decent figure for there better players then give em next to nowt, Campbell-Ryce esq.