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Half the clubs in the top four divisions are significantly behind in payments to the taxman and the Football League is discussing ways to combat the problem. About 46 clubs, including some in the Barclays Premier League, owe £15 million in tax that should have been paid on players’ salaries, including national insurance.
Some of the debts stretch back nearly two years, forcing Revenue & Customs to try to agree repayment schemes. Arrears could force a club into administration and the size of the debt is important to clubs trying to adhere to the League’s rules on insolvency. Luton Town were unable to agree a deal with the tax authorities for the repayment of £2.5 million to leave administration, which contributed to the League imposing a 20-point penalty, on top of a ten-point punishment imposed by the FA for breaching its regulations on agent fees.
The clubs have discussed a proposal for the League to monitor their tax positions.
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