MPs want tax breaks for supporter-led clubs
Football accountancy experts have welcomed news that MPs are lobbying the government to win tax breaks for supporter-owned football clubs, saying any initiative to cut costs is crucial.
Link: Insolvency rule faces final whistle
Under the MPs’ proposals, revealed exclusively in Accountancy Age last week, clubs owned by supporters that operate on a not-for-profit basis, such as Bury and York City, would be given tax breaks from the Inland Revenue.
Mike Evans, a director at PKF’s football unit who audits Fulham’s accounts, said any scheme to help ailing clubs would be ‘good for the clubs and the community’ and ‘tax breaks would be appropriate because these clubs are almost like charities’.
Last week, Accountancy Age reported that paymaster general Dawn Primarolo is to review the super creditor rule over the summer. The rule is credited with causing many of the financial problems affecting clubs.
Matthew Dunham, the insolvency practitioner from RSM Robson Rhodes who helped rescue Bury football club, said: ‘Anything that saves clubs money is worth exploring.’
A group of four MPs, including Labour’s Andy Burnham from Supporters Direct, said the breaks would help clubs that ‘exist for public benefit’ to be dealt with like a mutual. The football league said it could not comment on the proposals because they are consulting with the MPs. A spokesperson said: ‘We are in discussion with them at the moment.’
