Football clubs struggle to pay tax

At least 21 UK professional football clubs have VAT or corporation tax debts according to HMRC data obtained by Lubbock Fine.

Many clubs are struggling with the debts that worsened during the Covid lockdown while salary and energy costs have inflated substantially.

The firm says HMRC is concerned that football clubs may prioritise other expenses – such as player wages agent fees ground maintenance – ahead of meeting their tax obligations.

Graham Caddock director at Lubbock Fine said: ‘HMRC often feels that it is at the back of the queue for debts and is now taking a much more aggressive approach to collect those overdue liabilities.’

He warned that HMRC’s compliance action on football clubs is likely to get tougher as it aims to recoup more of the outstanding tax debts from those clubs. This will include issuing winding up petitions and appointing debt collection agencies...