Tax doesn't need to be taxing.....

[Yellowcoat]

How can they pay if there is not enough cash in the bank? It may have been a straight choice between paying the wages or the tax man. Given that many other clubs choose this route, until it catches up with them, why should it be surprising if we end up doing the same after RFC failed to get in the play offs or promotion?

[tmesis]

Maybe one day clubs will realise that if the choice is between paying the tax man and signing a new player, signing the new player isn't the option they should go for.

[Royal Rother]

Surely there must be an accountant nobber!!!! or a Run my own business nobber. Help me understand this madness.

It's the monthly PAYE & NIC that is unpaid.

They know almost exactly how much it will be every month of the year ahead, but ran out of cash because (presumably) AZ / BZ have said no more funds available.

More likely they always knew it was likely to happen, because income is also very predictable, so were perfectly well aware that unless they gained promotion or had a takeover deal sorted prior to the end of the season, they would need to sell a player immediately after the end of the season.

The notion that this has just crept up on the club is entirely false, it would have been one of the 3 options outlined above, and, although it was always the least attractive, they would have known it was also the most likely and may well have had discussions with other clubs regarding the availability of players before the end of the season.

[ZacNaloen]

Reckon this has happened every year except last year since we came down in 2008 and Madejski stopped putting money in.

The "mysterious" black hole which we all knew were running costs.

It's just been publicised because people are asking the question about finances.

[Westwood52]

Time for a stupid question.

Why didn't they pay the tax bill in the first place? I'm pretty sure the club have accountants. I'm pretty sure their job includes calculating tax, so why didn't they work it out and pay the darned thing?

Have the accountants been sacked, because surely they have not done their job or am I a real thicky and it is a lot more complicated than that (more than possible - could certainly never run a business - much easier to work in a job where they sort that tax nonsense out!!!)

Over to you clever people.

From thicky.

You tell the Client what tax to pay & when-what the Client does after that is up to them.

[Norfolk Royal]

Time for a stupid question.

Why didn't they pay the tax bill in the first place? I'm pretty sure the club have accountants. I'm pretty sure their job includes calculating tax, so why didn't they work it out and pay the darned thing?

Have the accountants been sacked, because surely they have not done their job or am I a real thicky and it is a lot more complicated than that (more than possible - could certainly never run a business - much easier to work in a job where they sort that tax nonsense out!!!)

Over to you clever people.

From thicky.

You tell the Client what tax to pay & when-what the Client does after that is up to them.

Exactly, the accountant calculates the figure and tells you how much is due to HMRC. If you can't pay it, you're f*cked.

[notloyalenuffroyal]

Thanks for the explanation people. It really is truly terrifying that clubs have been doing this, and even more terrifying that our "well run" club has been doing the same.

I am still a little surprised that there isn't a financial man at the top who says "No!" , but I suppose that is a Chairman's job. Here's another thicky question.... Do you pay tax on transfer fees?

[Ian Royal]

Thanks for the explanation people. It really is truly terrifying that clubs have been doing this, and even more terrifying that our "well run" club has been doing the same.

I am still a little surprised that there isn't a financial man at the top who says "No!" , but I suppose that is a Chairman's job. Here's another thicky question.... Do you pay tax on transfer fees?

What would you do if you don't have enough money to pay the players and the tax man?

Pay the taxman to keep HMRC happy and risk player's crying breach of contract, putting in poor protest performances, or having the FL kick you out of the league / dock you points for not honouring football debts?

Or would you prefer to have HMRC put you through the debt recovery procedure?

It sucks, but that's the way it is. It's understandable when you have the rug pulled out from under you. Some clubs seem to use it as an actual business model though.

[Royal Lady]

From some of our performances this season, I could have sworn the players were playing in protest!

[Maguire]

Remember, Reading fans, most of you welcomed TSI with open arms and entirely without question and many of you of course ridiculed the few who pointed out the dubious history of certain component members of TSI

I don't see the problem tbh - somebody else rich will buy the club, we've had an unlikely league title and year in the Premier League out of TSI, what was the other option? Plod through years of average Championship football under Sir John's ownership?

The world's not going to end.

[melonhead]

^ yeah that

[Green]

Try telling that to fellow supporters who have seen their club go to the wall following takeovers by unscrupulous foreign businessmen.

Don't say it can't happen here because it nearly did once before.

[WAZZOCK]

Wazzock - suitable name btw - we don't have any buyers - we have two potential buyers both of whom appear to be getting fed up with this dragging on - thanks, in no small part, to "TSI". It is clear we won't be buying in any players until the ownership is sorted. Personally, reaching the Prem last time was just a poisoned chalice - we spent money we couldn't afford, we were landed in further debt we couldn't afford and look at us now.....so, if I had been given the choice of spending one pretty dire year in the Prem and being in great debt or staying in the prem, still being a well-run club and TSI not being part of it, I would have chosen the latter - which was my original question. I know hindsight is a wonderful thing, but it wasn't difficult to predict that TSI (not to mention Samuelson) were going to bring problems rather than solve any. So, no, I'm not being dramatic - we are in deep shite at the moment and it doesn't look like being solved any time soon.

God I love being right. The news made public today in conjunction with some further developments I was made aware of today that haven't yet come to light, means this whole thing will be resolved within the next fortnight. Relax.

Oh and FYI, you have neglected to acknowledge that on top of the player expenditure we spent quite a bit of the Prem money on our fantastic Academy Setup, which is already starting to reap the rewards.

[multisync1830]

Wazzock - suitable name btw - we don't have any buyers - we have two potential buyers both of whom appear to be getting fed up with this dragging on - thanks, in no small part, to "TSI". It is clear we won't be buying in any players until the ownership is sorted. Personally, reaching the Prem last time was just a poisoned chalice - we spent money we couldn't afford, we were landed in further debt we couldn't afford and look at us now.....so, if I had been given the choice of spending one pretty dire year in the Prem and being in great debt or staying in the prem, still being a well-run club and TSI not being part of it, I would have chosen the latter - which was my original question. I know hindsight is a wonderful thing, but it wasn't difficult to predict that TSI (not to mention Samuelson) were going to bring problems rather than solve any. So, no, I'm not being dramatic - we are in deep shite at the moment and it doesn't look like being solved any time soon.

God I love being right. The news made public today in conjunction with some further developments I was made aware of today that haven't yet come to light, means this whole thing will be resolved within the next fortnight. Relax.

Oh and FYI, you have neglected to acknowledge that on top of the player expenditure we spent quite a bit of the Prem money on our fantastic Academy Setup, which is already starting to reap the rewards.

care to clear up the current share ownership situation. That would be most welcome

[WAZZOCK]

All I'd say is, just relax.

[multisync1830]

All I'd say is, just relax.

The trouble is when you try to be all knowing, high and mighty it can come back and bite you on the arse

Postby WAZZOCK » 11 Nov 2013 21:24

One of my good friends has quite a senior position at the club, and they have told me there is absolutely nothing to worry about. In fact they reckon that as a business, it is being run better than ever with new people in charge, and there are some exciting plans afoot for the club. Not being one to lie, I trust their judgement.

[ZacNaloen]

It would still be true if Anton hadn't of had his pocket money taken away.

[WAZZOCK]

Fact!

[ZacNaloen]

[multisync1830]

It would still be true if Anton hadn't of had his pocket money taken away.

Are you saying the debt didn't increase during last year?