Man Utd Debt

[GodalmingYellow]

People often forget, and this really annoys me, that when a company deducts tax from employees under PAYE, the comapny is paying the employee the agreed gross wages, then the employee is paying the government the taxes that are ue from the employee. The tax money never ever belongs to the business and they should not therefore be using it to subsidise their activities. The same applies to VAT. There really is no excuse at all for getting into arrears with these taxes, and doing so just costs there rest of us more in higher tax rates to compensate.

I believe the law is changing in May so that PAYE not paid on time is subject to penalties of 1% to 4% depending on the number of offences each year. Whether this will help or not I don't know.

Also, does anyone know about the Conference rule book appendix E which was referred to in last week's NLP? Something about all football creditors needing to be paid by May - is this just for clubs who have entered administration, or is it all clubs?

It won't make a blind bit of difference. If the company doesn't have the cash, adding more cost to the debt isn't going to get it paid any earlier. It needs a more fundamental change than that.

[Ascension Ox]

It's for all clubs except those relegated from the Football League. Failure to comply will lead to expulsion from the Conference. And my understanding is that it's all creditors, not just football ones, and they have to be paid in full, so no CVAs or nuffink.

Too strict a rule, badly thought out in my view. Could lead to decimation of a number of clubs.

Nothing to stop a CVA being proposed that pays creditors 100p in the pound Boris

Not much point having a CVA that pays 100p in the £.

I would like to see the wording of the rule before considering if I regard it as a good rule or not. Footballs clubs do however need to get their houses in order and stop relying on borderline fraudulent attempts to avoid paying their creditors and using this as a method of capitalisation to fund activities that they cannot afford.

It isn't good enough to say let them overspend, then get the debts written off.

Of course there is a point to a CVA that pays 100 p in pound! Its good for the creditors for starters!

CVAs can run for years , eg 5 year period is very common when HMRC are involved. CVAs will become far more common this year, they are perceived as being far fairer to creditors as a whole rather than administration where banks and secured creditors take first dibs.

I repeat HMRC have had enough of defalcating football clubs. A big club will be wound up soon. Maybe Pompey.

How on earth can a club with all the massive financial benefits that the Prem creates be such an awesome financial basket case?

Redknapp and Storrie need to take a lot of the blame in my view.

[SmileyMan]

It won't make a blind bit of difference. If the company doesn't have the cash, adding more cost to the debt isn't going to get it paid any earlier. It needs a more fundamental change than that.

My accountant tells me that the Revenue have got a lot nastier recently, since they've adopted Customs approach to arrears, ie early persistent and hard intervention.

Personally, having got into a bit of difficulty when I was first trading, I stick all my taxes and a bit extra into a business deposit account, then pay all the bills on time. If I, literally the worlds most useless person with money, can do it then anyone can.

I agree that such a situation could easily be made a legal requirement, although with electronic banking it's so easy to whip the money from the deposit to the current account and do a runner, that I doubt it would do much to control the crooks.