Quote: Slugger McBatt "Tax is owed by every club probably about twice a year. It's called a tax demand. '"
You are likely on slightly the wrong tack there, mate.
Limited companies making a taxable profit have to pay corproration tax. I think you are getting mixed up with the 31/1 and 31/7 payments on account a self-employed person, or anyone not taxed under PAYE, has to make?
What all businesses DO have to do is to pay over tax and NIC deducted from employees, employers NIC, and VAT collected from customers less that paid to suppliers, on (usually) a monthly basis for PAYE and quarterly foe VAT.
You tend to find that most of the non-payment of "tax" issues with clubs tend to be where the club has deducted PAYE from employees or collected net VAT from customers - i.e. money that was never its own -and then not paid it when due. Or, indeed, for a long time afterwards.
That means the business has been using money that is not its own to finance the business.
I have always viewed using money not your own to pay your own bills as being theft, personally. Is it any wonder HMRC take the view they do? What would YOU do if, say, your employer paid your wages instead to one of its suppliers and told you it could not really be sure when it could pay you? Its not that different.
As for whether HMRC get any money on wind-up: in the old days, of "Crown Preference", HMRC stood ahead of the ordinary unsecured creditor for much of what they were owed - certainly for unpaid PAYE etc. This tended to let them take a bit more of a relaxed approach to unpaid PAYE etc. However, since the Enterprise Act 2002 abolished Crown Preference - and at the same time very much encouraged alternatives to Receivership or Liquidation to try and preserve businesses - HMRC stands with the rest of the unsecured creditors.
And they have been ripped off time and time again - look at the scandalous disgrace that was Harlequins, where pretty well all the unsecured creditors were paid and it was the owners and HMRC (i.e the taxpayer) left losing a shedload. So HMRC have understandably decided enough is enough, and have become far more proactive in pursuing sports clubs for unpaid PAYE VAT etc. They take the view that to get in first, and carrying a very big stick, is more likely to secure a recovery for the taxpayer.
Can you blame them?
