Football and Premier League to do battle with HMRC in court

Football loving accountants may be aware that the Football and Premier League are in dispute with HMRC over a controversial insolvency rule.

The Revenue wants the football creditor rule overturned because it claims it is unlawful. Under the current rule, if a club goes into administration, clubs, players and managers take priority when it comes to payments. Football creditors receive payment in full and any funds that are left are then divided among the remaining creditors.

Last Wednesday, May 5th, Mr Justice Newey granted HMRC’s application for a hearing and set a date for November 28th. He also said the Premier League could intervene and have its say because both divisions impose the same rule.

Earlier this month, HMRC and the Premier League crossed swords in a Supreme Court case concerning Lehman Brothers’ insolvency principles.

Still on the subject of football, the administrators of Plymouth Argyle succeeded in getting 82% of the club’s creditors to approve a Company Voluntary Arrangement. HMRC vetoed the proposal which is likely to see unsecured creditors receive less than 1% of the amount they are owed.

Meanwhile, Sven-Goran Erikkson, the former England manager, has appointed Ian Defty from Kingston Smith & Partners to liquidate Pier 24, his former financial advisors.

Erikkson, who is now manager of Manchester City, brought the winding-up petition against Pier 24 for personal debts totalling £887,815.

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