Paragon

[piegonk74]

Last year Paragon Interiors group made £9m profit, I think it's in fine shape. I think it's people stirring the pot

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[mark45]

Last year Paragon Interiors group made £9m profit, I think it's in fine shape. I think it's people stirring the pot

Well that ain't enough to run a football club losing £3.5m a year.

[Chicken Balti Pie]

Well that ain't enough to run a football club losing £3.5m a year.

That is, we're losing 3.5m a year, so they only need to cover £3.5m of which 3.5 fits very nicely into 9... Also, that's 3.5m they don't have to pay tax on so it helps offset some tax for them as well

[piegonk74]

Well that ain't enough to run a football club losing £3.5m a year.

They didn’t make enough to cover notts losses , don’t know where chickenbaltipie got his figures from?

[magpie_mania]

That is, we're losing 3.5m a year, so they only need to cover £3.5m of which 3.5 fits very nicely into 9... Also, that's 3.5m they don't have to pay tax on so it helps offset some tax for them as well

I reckon this tax saving is a red herring. So if they fund a loss of £3.5m at 20% they could offset £700k in tax, but they still lose £2.8m. I know I'm pretty simple but I would rather pay the tax and still be £2.8m to the good

[McCullochisGod]

The construction industry is in trouble , most operate on ridiculous low margins and take on huge risk. I would not be surprised if paragon are struggling, they certainly wouldn’t Be making sufficient profits to pay the running costs of a football club.

Didn't they lay off several workers recently?

[Old_pie]

I reckon this tax saving is a red herring. So if they fund a loss of £3.5m at 20% they could offset £700k in tax, but they still lose £2.8m. I know I'm pretty simple but I would rather pay the tax and still be £2.8m to the good

It's AH's money. He has to fund Notts somehow and therefore could take the required money as salary which is expensive due to tax and employers + employees National Insurance, as Dividend which requires other shareholders to get the same percentage and is still taxed or as corporate loan which I believe is the way it is being done. A loan won't show as a loss or profit at this stage but the interest accrued will (I'm assuming that Notts aren't paying the interest, there's no point). When Notts are sold some, all or none of the loan will be paid back leaving Paragon with some loss, no loss, or all loss and then that will reflect in that years Profit & Loss and tax will be saved/paid accordingly.

At least, that's the way I understand it is all being done, much the same as RT did it.

[magpie_mania]

It's AH's money. He has to fund Notts somehow and therefore could take the required money as salary which is expensive due to tax and employers + employees National Insurance, as Dividend which requires other shareholders to get the same percentage and is still taxed or as corporate loan which I believe is the way it is being done. A loan won't show as a loss or profit at this stage but the interest accrued will (I'm assuming that Notts aren't paying the interest, there's no point). When Notts are sold some, all or none of the loan will be paid back leaving Paragon with some loss, no loss, or all loss and then that will reflect in that years Profit & Loss and tax will be saved/paid accordingly.

At least, that's the way I understand it is all being done, much the same as RT did it.

That may be all correct but the basic thing is that no loss is better than any loss, however much tax you might save

[Old_pie]

That may be all correct but the basic thing is that no loss is better than any loss, however much tax you might save

NCFC run at a loss, how do you propose that be funded? Tax efficiently or tax inefficiently?

[magpie_mania]

NCFC run at a loss, how do you propose that be funded? Tax efficiently or tax inefficiently?

Tax efficiently of course. But that isn't my point at all. It just gets trotted out that making a loss is a good thing because it reduces your tax.

My question is simply this:

What would be best?
Making no loss and having to pay some tax.
Making a loss, reducing your tax bill but having to pay out the loss (less the tax bill)

If my boss said "We are going to pay you £10k less, but don't worry as it will save you (say) £2k in tax" I would have to look at it as £8k lost not £2k gained.

Wouldn't you?