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Author Topic: Southend Utd expected Admin  (Read 8417 times)
Power to people

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« Reply #30 on: Wednesday, November 4, 2009, 09:34:52 »

There is a consortium interested in taking over Southend, I wonder if they will be given more time to sort things out ?

I thought originally HMRC was due to petition for a winding up order but then cancelled it and applied to put them into admin
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Simon Pieman
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« Reply #31 on: Wednesday, November 4, 2009, 09:45:45 »

Are they in admin yet? Yawn.
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pauld
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« Reply #32 on: Wednesday, November 4, 2009, 10:12:25 »

There is a consortium interested in taking over Southend, I wonder if they will be given more time to sort things out ?
Rejected already, do keep up Smiley
http://news.bbc.co.uk/sport1/hi/football/teams/s/southend_utd/8340347.stm

Quote
I thought originally HMRC was due to petition for a winding up order but then cancelled it and applied to put them into admin
They were but when they realised the scale of the indebtedness, they apparently reckoned they'd get very little back from a liquidation and would have more chance of recovering a greater portion of the money owed via admin so went for that instead. In other words, this isn't a case of HMRC backing off from liquidation per se, just financial tactics.
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jonny72

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« Reply #33 on: Wednesday, November 4, 2009, 13:22:44 »

Not strictly true, VAT is a flat rate of gross turnover.

Is that enforced on football clubs or is it opt in as it is for other businesses?
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Simon Pieman
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« Reply #34 on: Wednesday, November 4, 2009, 13:37:46 »

Is that enforced on football clubs or is it opt in as it is for other businesses?

I wasn't referring to the flat rate scheme, my choice of words was a bit poor.

The point I was trying to make is that STFC once had a huge VAT bill because they didn't have a clue as to the VAT position due to poor accounting. It could probably happen at other clubs too.

But seeing as you charge VAT as part of the ticket price you should already have the money to pay over. Any VAT you claim back on purchases to reduce the VAT paid over is a bonus.
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Barry Scott

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« Reply #35 on: Wednesday, November 4, 2009, 13:56:33 »

So they owe 2.1m? Shitty lost that last year and 6.5 this year... Come on Shitty, keep chasing the dream. Please. Cheesy
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jonny72

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« Reply #36 on: Wednesday, November 4, 2009, 14:09:11 »

I wasn't referring to the flat rate scheme, my choice of words was a bit poor.

The point I was trying to make is that STFC once had a huge VAT bill because they didn't have a clue as to the VAT position due to poor accounting. It could probably happen at other clubs too.

But seeing as you charge VAT as part of the ticket price you should already have the money to pay over. Any VAT you claim back on purchases to reduce the VAT paid over is a bonus.

Unfortunately its a bit too easy for any business to use money due for VAT (and other HMRC payments) as an aid to cash flow, which just creates another problem when the payment is due. I'm sure HMRC could tighten things up to stop the problems getting as big as they do, but its another area that the football authorities could clamp down on.

Maybe an automatic 3 point deduction if you don't make your monthly / quarterly payment on time. Add on the same penalty for failing to make salary payments on time and the deductions would soon mount up, which in turn would be a pretty massive incentive for clubs to stop spending money they don't have.

The current 10 point administration deduction just doesn't work and they need to do something to sort it.
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nevillew
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« Reply #37 on: Wednesday, November 4, 2009, 14:47:30 »

Not strictly true, VAT is a flat rate of gross turnover.


**pedant** Unless you're dealing with zero rated goods or services as a proportion of the total **pedant**
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Paolo Di Canio, it's Paolo Di Canio
nevillew
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« Reply #38 on: Wednesday, November 4, 2009, 14:50:14 »

The point I was trying to make is that STFC once had a huge VAT bill because they didn't have a clue as to the VAT position due to poor accounting. It could probably happen at other clubs too.

I must admit I thought it was a cash flow problem caused by the fact that the cash budget did not take account of the fact that VAT would have to be paid, but I may be wrong.
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Paolo Di Canio, it's Paolo Di Canio
Simon Pieman
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« Reply #39 on: Wednesday, November 4, 2009, 14:50:49 »

Or things like bank interest which are exempt. Let's not get too technical Nev, we're all beginning to sound like a bunch of boring bopards
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Batch
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« Reply #40 on: Wednesday, November 4, 2009, 14:53:51 »

and people say accountants are boring Smiley
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nevillew
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« Reply #41 on: Wednesday, November 4, 2009, 15:09:42 »

Or things like bank interest which are exempt. Let's not get too technical Nev, we're all beginning to sound like a bunch of boring bopards

You started it...
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Paolo Di Canio, it's Paolo Di Canio
Simon Pieman
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« Reply #42 on: Wednesday, November 4, 2009, 16:21:42 »

and people say accountants are boring Smiley
internal auditors are worse
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REDBUCK

« Reply #43 on: Wednesday, November 4, 2009, 16:52:04 »

Bank Interest isn't always exempt
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dell boy

« Reply #44 on: Wednesday, November 4, 2009, 17:12:01 »

http://news.bbc.co.uk/sport1/hi/football/teams/s/southend_utd/8342164.stm
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