Match of the month: Football League v HMRC

Posted by nickhuber PM | on Mon, 05/12/2011 - 08:52 1778 7 comments

A dispute between the Football League and HMRC over the controversial football-creditors rule began in the high court on Wednesday, the Guardian has reported.

Mr Justice David Richards, who is no relation to his namesake Sir Dave Richards, the chairman of the Premier League, will adjudicate on what is one of the most emotive issues in football. Under the rule, buyers of insolvent clubs in administration must pay in full every penny owed to other clubs and to their own millionaire footballers, while other unsecured local-community creditors receive much-reduced sums, the Guardian said.

Gregory Mitchell QC, for HMRC, was quoted by the Guardian as arguing that the rule represents "the ugly side of the beautiful game."

Mitchell pointed to the 36 Football League insolvencies since 2002 that have led to the tax authorities receiving "a very modest dividend".

Continued...

they think its all over

carnmores | Mon, 05/12/2011 - 16:43 | Permalink

it better be now!

if it was in the best interests of sport , whatever they be , we wouldnt have the FEU either

I like football 4 thanks

andrewdiver | Tue, 06/12/2011 - 09:14 | Permalink

but I am 100% behind HMRC on this one.

There is no reason why football creditors should have protected status. Not only are HMRC being deprived of significant sums in tax, but also all of the smaller (non-football) businesses in the local area who are cut-adrift but this ruling.

Imagine having the same rules in every industry. No reason why we shouldn't. We will make sure we pay all other accountancy firms before HMRC on winding up etc. the rule is a complete nonsense.

Don't go all tabloid on us 1 thanks

dwgw | Wed, 07/12/2011 - 11:42 | Permalink

Use of the catch-all term "millionaire footballers" makes clear the author's position on this subject. The majority of the footballers employed by insolvent clubs are far from being millionaires. I suspect that you wouldn't find many millionaire footballers playing outside the top two leagues - and not every player in those leagues will be a millionaire.

There are reasoned arguments to be made by both sides on this topic and, hopefully, this case will see them aired and a sensible outcome emerge. The use, in an article purporting to be technical, of disparaging terms better suited to a tabloid paper does nothing to enhance the debate.

What if it was made a crime for the directors .... 2 thanks

ringi | Wed, 07/12/2011 - 11:58 | Permalink

Maybe we need a radical change in the law.

What if it was made a crime (for the directors etc.) not to pay the PAYE taxes and NI over to HMRC on the same day as an employee is paid? (This would be easier with on-line payment and PAYE software then in the old days of paper P11ds and cash payments)

VAT is a bit harder to see how to do this…

But I can’t see way the directors of company can’t be personally liable for all PAYE and VAT depts., as they are just holding the money in trust for the government and it was never the companies money in the first place. Likewise for cooperation tax on an amount up to the dividends that were paid in the year (advanced cooperation tax had its advantages).

@ringi

carnmores | Thu, 08/12/2011 - 12:25 | Permalink

totally unworkable as is the real time sysytem to come - people will simply stop employing people on PAYE

Cooperation tax has just made

andrewdiver | Thu, 08/12/2011 - 17:23 | Permalink

Cooperation tax has just made me smile.

Although perhaps there should be some bigger cooperation relief for those who pay PAYE/NIC/VAT on time!

yes

carnmores | Fri, 09/12/2011 - 11:57 | Permalink

and non cooperative !