Southend Utd expected Admin

[tans]

I can safely say i dont give a toss about Southend. The only club im worried about is my own.

I know that attitude stinks, but im sure they didnt give a fuck about us when we nearly went under...

[reeves4england]

The Accrington one is a bit weird, they've had three or four offers of investment/cash injections (including one from their own fans) which they've turned down.

I suppose it depends what form the investment took and what was wanted in return. I wouldn't imagine the fans who offered money would be out to rip the club off, but accepting the offer could still have left them in an even worse position had there been high interest rates on the loan

[pauld]

I suppose it depends what form the investment took and what was wanted in return. I wouldn't imagine the fans who offered money would be out to rip the club off, but accepting the offer could still have left them in an even worse position had there been high interest rates on the loan

I think the sticking point in all cases was not interest rates but that they all wanted shares/seats on the board etc which is pretty usual for a major investment along those lines. Which for me anyway put rather a different light on just how desparate their situation actually was - started to look more like the old familiar story of a board that had screwed up but didn't want to relinquish any control

[Barry Scott]

That's another one then.

Fitton's "half dozen" prophecy is coming true.

He is like nostradamus.

He is. And like i mentioned in another thread, clubs will continue to fall and fail while all the while we'll be building our foundations for the future. A day will come when we're financially stronger than many, many clubs - due to Fitton's clever use of money - and we'll be picking up the pieces from all those clubs living in the here and now with quick-fix-credit-card-mentality.

[Summerof69]

In the Football Paper today, they're saying that Southend's tax debt is just £2.1m !!

[Power to people]

In the Football Paper today, they're saying that Southend's tax debt is just £2.1m !!

That's nothing compared to some clubs but HMRC have been getting tough for the last year or so though anyway, not sure when sarfend are due back in court

[dell boy]

Hull are in terrible trouble if they go down this season - £40m in debt, there wages are a lot higher than other also-ran Premier clubs as well.

[suttonred]

That's nothing compared to some clubs but HMRC have been getting tough for the last year or so though anyway, not sure when sarfend are due back in court

Tomorrow morning.

[Iffy's Onion Bhaji]

That's nothing compared to some clubs but HMRC have been getting tough for the last year or so though anyway, not sure when sarfend are due back in court

That's a hell of a lot. I think we owed HMRC £1.1 million when Fitton took over and that more than enough.

[Summerof69]

I think we owed HMRC £1.1 million when Fitton took over and that more than enough.

We owed HMRC over £3m when Fitton took over, as the accounts for May 2007 stated that, and you can bet that Diamond Mike and co. didn't pay any anything over the following 6 months as well, so I'd be very surprised that the total owed was in the region of £3.5m by the time Fitton came in.

[jonny72]

In the Football Paper today, they're saying that Southend's tax debt is just £2.1m !!

If a company owes HMRC a grand they will go after them, and will eventually file for bankruptcy if they don't get paid in full. They don't give a fuck whether they get any of the money back, or if they get a lot less back by going down the bankruptcy route - its the principle that matters to them most. They are one creditor a company can't fuck about with.

[RedRag]

I never really understand why basket case disaster area loss makers such as we were end up owing tax - I thought it was profits that were taxed?

[jonny72]

HMRC nowadays is responsible for collecting; taxes, national insurance and VAT - so a club could owe any of them.

But the main issue is with the income tax and NI payments for their employee's. The club is responsible for paying their own share and deducting the employee's share and paying it to HMRC, which adds up to a fair bit every year - at least 25% of the total wage bill.

Though I'd imagine the VAT bill could be sizeable for most clubs, as in effect they have to pay VAT on all profits they make on sales - most clubs should be making a profit on items liable for VAT.

[RedRag]

neatly explained - I can now see another of the attractions of the late Mr Hilliers' illegal payments.

[Simon Pieman]

Not strictly true, VAT is a flat rate of gross turnover. Effectively you should deduct it in readiness for paying over to HMRC, but when it gets spent on other things with no regard for this you're a bit buggered, as a certain Samdy Gray found out.

All these late payments incur interest and penalties, it's incredible how they mount up.