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HMRC Issues Wednesday Winding Up Order

They owe approx £550,000 in unpaid tax according to SSN.
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Comments

  • I suspect we'll be seeing a lot more of this sort of thing in the coming months.
  • haven't they been signing (fairly) decent players left right and centre on no doubt decent wages !!!
  • Sorry to be pedantic,but could you just slip a 'Sheffield' into the title of this thread.
    Nearly gave me a heart attack!
  • Should have done this on a Wednesday and included a wind up in the order
  • Club announce no plans for administration ?????


    how have they been let sign players like they have..

    arnt they supporters trust owned???
  • I wonder if we owe the tax man anything. I notice that the revenue are getting more aggressive and they are not happy that football creditors get first bite, even before them. They have objected to the Portsmouth CVA, which if successful would scupper Portsmouth, presumably giving them further points deductions. the courts have agreed to bring forward the hearings so that the issue can be resolved pre season.

    Would not be surprised if legislation had something slipped in to give more powers to HMRC in footballing cases and rightfully so, since it is our taxes that clubs have held onto.
  • I have said this before

    in my opinion they are looking to take a club down, and i reckon they are waiting for one with a big name and history


    counts us out then ;-)
  • Reading the BBC news website, they seem confident that the HMRC bill will be paid. Looks like they're going to try a similar gamble to the one our board tried last season - live beyond their means and hope to go straight back up.
  • [cite]Posted By: nth london addick[/cite]how have they been let sign players like they have..
    I was thinking the same.
  • sounds like they've budgeted for it but have just bought themselves a bit of time over the summer http://www.thestar.co.uk/sportheadlines/BREAKING-Owls-speak-out-about.6436451.jp
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  • The Sun reports today that Wednesday have apparently had a bid of 1.5m from Burnley for their goalkeeper Lee Grant, so assuming it's true will solve this problem straight away.
  • [cite]Posted By: Chris_from_Sidcup[/cite]The Sun reports today that Wednesday have apparently had a bid of 1.5m from Burnley for their goalkeeper Lee Grant, so assuming it's true will solve this problem straight away.
    The cynic in me suggests that the bid will be significantly revised downwards after today's winding-up order... Well done HMRC, you've probably just shafted Wednesday out of about 500k
  • edited July 2010
    I cant understand why clubs can afford to fork out millions on managers, players, ceos, directors etc but cant employ a half decent accountant.

    Surely they must know they have tax to pay. If a self employed plumber or any independent business didnt put money aside for tax they would be in schtuk if they hadn't put aside enough cash for tax.

    Theres ways of offsetting tax in the years you make losses etc so i cannot understand why clubs dont get accountants to ensure that this things happen? Its not as if tax is a new phenomenon that has caught everyone by suprise....more of a case of clubs gambling that they can blag it and hopefully magically get into the premiership where a tax bill of 500k would be pittance.

    Or am i missing something?
  • Is this a wind up...?
  • edited July 2010
    RCT, Most of the money the clubs owe to HMRC is not Corporation Tax as you've rightly pointed out is likely to be nil due to little profit. The money is the Income Tax and Naional Isurance they owe on their employees earnings. For small businesses you are given three months to pay the tax. So you pay the employees their net pay and you then pay the tax (and NI) each quatrer in arrears. If you don't pay it on time you are not chased immediately, so for a football club, that could easily run into hundreds of thousands.
  • [cite]Posted By: Leroy Ambrose[/cite]
    [cite]Posted By: Chris_from_Sidcup[/cite]The Sun reports today that Wednesday have apparently had a bid of 1.5m from Burnley for their goalkeeper Lee Grant, so assuming it's true will solve this problem straight away.
    The cynic in me suggests that the bid will be significantly revised downwards after today's winding-up order... Well done HMRC, you've probably just shafted Wednesday out of about 500k

    Better that than them shafting all of us taxpayers for about 500k!
  • Got a fine from HMRC other month as my ltd Company hadnt paid my tax for 3 months one hour and 14 mins ! was about a fiver i think so i did an Ashley Cole and asked for time to pay.
  • Interesting. I think I'll get my PAYE and NI paid this afternoon then.

    Was it Corporation tax you owed, or PAYE and NI?
  • [quote][cite]Posted By: Kap10[/cite]I wonder if we owe the tax man anything. I notice that the revenue are getting more aggressive and they are not happy that football creditors get first bite, even before them. They have objected to the Portsmouth CVA, which if successful would scupper Portsmouth, presumably giving them further points deductions. the courts have agreed to bring forward the hearings so that the issue can be resolved pre season.

    Would not be surprised if legislation had something slipped in to give more powers to HMRC in footballing cases and rightfully so, since it is our taxes that clubs have held onto.[/quote]

    Wasn't this because Sky's money went straight to the clubs owed and not to them. Therefore Portsmouth never saw the money otherwise it would have had to go to government.

    Not sure how you would legislate to make other companies give money to a company at risk.
  • No, it is becasue in the event of a CVA all football debts need to be paid in full otherwise the club lost the 'Golden Ticket'. Thus if a club owe £2m to Arsenal for an umpaid transfer fee and £5m to HMRC the end result is that at 10p in the £ the Public Purse (HMRC) get £500,000 and Arsenal get their full £2m.

    This is what the Government (HMRC) want to change. As a football club can't continue to trade without being in the League it does mean that if the creditors refuse to accept the offer (in Palace's case it was 1p in the £) the club would be forced into liquidaion, and football league rules mean that the players (the likely olny asset) get free tarnsfers.

    Thus the football employees and the other clubs get 100% of what they are owed and the HMRC (that's the money used to pay for hospitals and schools) get as little as 1% of their debt.

    Thus is why sooner or later a football club is going to be forced out of business. I believe that HMRC have also issued a writ to the Premier League on this subject.
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  • "Thus the football employees and the other clubs get 100% of what they are owed and the HMRC (that's the money used to pay for hospitals and schools) get as little as 1% of their debt."

    Nice bit of emotional blackmail! It also gets use to pay for pointless wars and Scousers who wont work.
  • Sure, it does, but to be honest, I'd rather be spending it on wars and those that are not working (irrespective as to where they live) than multi-millionaire footballers. Besides, in the end all of us will have to pay with increased taxes or reduced public services becasue let's face it, they won't stop going to war, nor will they stop paying Welfare Benefits. The cuts will most likely come in hospitals and schools.

    Even many of those of us that love football have little sympathy with this rule. Imagine how much public support there will be for those hospitals and schools (and that's how it will be presented) when they bankrupt a club that has run up millions of pounds of debt, much of it owed to the Public Purse.
  • edited July 2010
    [cite]Posted By: kings hill addick[/cite]RCT, Most of the money the clubs owe to HMRC is not Corporation Tax as you've rightly pointed out is likely to be nil due to little profit. The money is the Income Tax and Naional Isurance they owe on their employees earnings. For small businesses you are given three months to pay the tax. So you pay the employees their net pay and you then pay the tax (and NI) each quatrer in arrears. If you don't pay it on time you are not chased immediately, so for a football club, that could easily run into hundreds of thousands.

    True for small businesses with few employees but I would have thought that they should be paying monthly in arrears. I've had trouble with HMRC and it was all down to them losing my company records. It still frightened the life out of me when they tried to fine us over £10k for arrears on CT (which we'd paid - amounting to less than £400 due to it being our our first year start up). I think the figures they bandy around are not necessarily the actual tax owed but their arbitrary penalties.
  • [cite]Posted By: kings hill addick[/cite]Sure, it does, but to be honest, I'd rather be spending it on wars and those that are not working (irrespective as to where they live) than multi-millionaire footballers. Besides, in the end all of us will have to pay with increased taxes or reduced public services becasue let's face it, they won't stop going to war, nor will they stop paying Welfare Benefits. The cuts will most likely come in hospitals and schools.

    Even many of those of us that love football have little sympathy with this rule. Imagine how much public support there will be for those hospitals and schools (and that's how it will be presented) when they bankrupt a club that has run up millions of pounds of debt, much of it owed to the Public Purse.
    Best. Post. Ever.
  • Agreed. KH's post is spot on.

    Good discussion / article all in all.
  • Sheff Weds lastest backer has pulled out of a takeover.

    Someone ask Dan Roan for his views ; - )
  • edited November 2010
    He's too busy working himself into a lather over Gareth Bale, he'll be in there for hours.........
  • Nov 16th into Admin?
  • just booked hotel and train for 12 mates for our game on 15th Jan up there. They better not wind up!
  • Worse than that ValleyGary we'd lose the three points we won last weekend.
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