HMRC eyes up football clubs
Newcastle FC tax ruling sets precedent
UK football clubs are facing multi-million-pound VAT bills from HM Revenue
& Customs following a VAT appeals tribunal that ruled against Newcastle
The tribunal ruled that Newcastle United was not allowed to claim back the
tax on fees paid to agents involved in transfers between clubs and contract
negotiations with players.
It must now pay £475,000 to HMRC and other clubs are expected to be targeted
for backdated tax relating to the past three years, including Manchester United,
Chelsea and Arsenal.
Given that Chelsea has spent in the region of £300m on transfers in the last
three years, their bill could be around £16m, The Times reported.
Newcastle said it intends to lodge an appeal to the High Court.