Today's Court Hearing

[Sandbach Shrimper]

Scannel has swine flu

We haven't signed any players since 1972

During the Summer break Tilson managed to halve his handicap

Rumours afoot that we are looking to re-sign some gypsy bloke or other

Our only central defender is crocked

Wiggy is in fact a young striker who progressed through the academy

Ron is all blogged out

Oh and we might go bust any minute now

I love Southend United!

 

[Matt the Shrimp]

40 minutes, and still no statement from Pravda about this. Why not? Surely, if this was all so straightforward, Scriv should have had a piece ready to roll...

:thump: :unsure:

 

[Rusty Shackleford]

40 minutes, and still no statement from Pravda about this. Why not? Surely, if this was all so straightforward, Scriv should have had a piece ready to roll...

:thump: :unsure:

Perhaps it's because Scriven is a numbskull? Just putting it out there.

 

[Smiffy]

40 minutes, and still no statement from Pravda about this. Why not? Surely, if this was all so straightforward, Scriv should have had a piece ready to roll...

:thump: :unsure:

Calm down dear.

I'm sure The Echo will break the story first...

 

[South Bucks Shrimper]

No need for alarm

So, exactly as the Chairman said on 16th July. I repeat it here for those who are unable to view it on the Club website:

"Supporters may have read over recent weeks that the Club has a shortfall to HMRC requiring a payment of some £690,000. A similar situation arose this time last year necessitating a payment of £660,000 in July 2008.

At its Annual General Meeting in June this year, the Football League passed a resolution that has since been accepted by HMRC giving football clubs time to pay their indebtedness - a particularly prevalent situation within the industry. Southend United had been in discussion with HMRC for some time with a view to concluding a time to pay agreement in accordance with the newly adopted Football League rules.

The new rules were passed on the June 12th. On that very day the HMRC issued a petition against the Club. The timing could not have been more perverse. It was later described to me as a case of the right hand not knowing what the left hand was doing.

Whatever the position, since June 12th we have been in a statutory process that has to run its course. Supporters need not be alarmed. Advertising a winding up petition is an automatic part of the process and has to be carried out a few days before the hearing scheduled later this month. The Club will seek an adjournment whilst we conclude the agreement with HMRC.

Ron Martin Chairman"

 

[Rusty Shackleford]

So, exactly as the Chairman said on 16th July. I repeat it here for those who are unable to view it on the Club website:

"Supporters may have read over recent weeks that the Club has a shortfall to HMRC requiring a payment of some £690,000. A similar situation arose this time last year necessitating a payment of £660,000 in July 2008.

At its Annual General Meeting in June this year, the Football League passed a resolution that has since been accepted by HMRC giving football clubs time to pay their indebtedness - a particularly prevalent situation within the industry. Southend United had been in discussion with HMRC for some time with a view to concluding a time to pay agreement in accordance with the newly adopted Football League rules.

The new rules were passed on the June 12th. On that very day the HMRC issued a petition against the Club. The timing could not have been more perverse. It was later described to me as a case of the right hand not knowing what the left hand was doing.

Whatever the position, since June 12th we have been in a statutory process that has to run its course. Supporters need not be alarmed. Advertising a winding up petition is an automatic part of the process and has to be carried out a few days before the hearing scheduled later this month. The Club will seek an adjournment whilst we conclude the agreement with HMRC.

Ron Martin Chairman"

If it was as simple as Mr Martin claims here, why would an adjournment be necessary? Surely we would just be negotiating a payment plan with HMRC? I would suggest we have three months to come up with the cash.

 

[MK Shrimper]

Well the club is still operating as I just got my two tix for Huddersfield at the cut down price of £20 on behalf of it being my birthday soon :)

 

[Matt the Shrimp]

So, exactly as the Chairman said on 16th July.

Things that are straightforward and simple don't need to be taken to court in order to be resolved.

A petitioner can withdraw their petition at any stage or apply by consent to an adjournment. If that was the case here, why wasn't that tied up weeks ago and explained fully on the OS?

Matt

 

[sufcis4life_notjust4cardiff]

In basic terms we owe the HMRC £700k, we've not paid so they've begun proceedings to close us down

So how did we allow a debt to get this high?

 

[BILLERICAY BLUE]

Things that are straightforward and simple don't need to be taken to court in order to be resolved.

A petitioner can withdraw their petition at any stage or apply by consent to an adjournment. If that was the case here, why wasn't that tied up weeks ago and explained fully on the OS?

Matt

As you said earlier Matt, this is HMRC we are dealing with.....

Edit - This could explain why we haven't signed anyone yet. Maybe we've had a block put on us whilst this is ongoing??

 

[palexander]

So how did we allow a debt to get this high?

Hairspray and high-technology combs.

 

[HudsonNo1]

I dont understand anything about HMRC how they work when they are owed money or what this "petition" business is all about. Could someone put it in plain and simple terms.

 

[Matt the Shrimp]

As you said earlier Matt, this is HMRC we are dealing with.....

Fair point... very fair point.

 

[BLUEBLOOD]

So how did we allow a debt to get this high?

That will be our year on year figure (give or take a few quid) ... i'm no expert but i imagine it to be a similar situation to a self employed tradesman who has to pay his VAT bill by April or risk a slapped wrist (x lots in our case obviously)

 

[Matt the Shrimp]

I dont understand anything about HMRC how they work when they are owed money or what this "petition" business is all about. Could someone put it in plain and simple terms.

Old rules: if you owed HMRC money, they would not blink before issuing a winding up petition and putting you into liquidation in order to get their cash.

New rules: Ron seemed to suggest that, this year, HMRC is working with debtors in order to allow them to schedule their debts, thereby spreading the tax burden over a longer period of time and thus making it possible to pay off the outstanding tax while continuing to trade.

 

[A Century United]

If it was as simple as Mr Martin claims here, why would an adjournment be necessary? Surely we would just be negotiating a payment plan with HMRC? I would suggest we have three months to come up with the cash.

This is getting silly. RM was upfront about this. He said from the start what was going to happen. It has happened exactly as he said it would. But the conspiracy theorys just keep on growing Funny how most of this has been kept running by those who dislike Ron.

 

[Rusty Shackleford]

So how did we allow a debt to get this high?

If we're consistently making a loss, then I would suggest we're not behind on our corporation tax bill. My guess is that the club is collecting VAT from its customers (us) and not paying it over to HMRC. Either that or we're behind on payroll taxes. Just my guess.

 

[Beefy]

Old rules: if you owed HMRC money, they would not blink before issuing a winding up petition and putting you into liquidation in order to get their cash.

New rules: Ron seemed to suggest that, this year, HMRC is working with debtors in order to allow them to schedule their debts, thereby spreading the tax burden over a longer period of time and thus making it possible to pay off the outstanding tax while continuing to trade.

It's not out of the goodness of their hearts though. In the old scenario, football clubs would go into administration, raise a phoenix co and HMRC would be lucky to get 10p in the pound. That's why they blocked Leeds and subsequent clubs' attempts to get a CVA. The new rules are an attempt to get the tax man his money and stop clubs using administration as a way to avoid paying their bills - of which their tax bill is almost always their biggest.

 

[Beefy]

If we're consistently making a loss, then I would suggest we're not behind on our corporation tax bill. My guess is that the club is collecting VAT from its customers (us) and not paying it over to HMRC. Either that or we're behind on payroll taxes. Just my guess.

You're right it's the VAT. We've joined the long list of clubs which have used the money that should be ring-fenced for tax and used it as working capital.

 

[NZamba Legend]

We've joined the long list of clubs which have used the money that should be ring-fenced for tax and used it as working capital.

So effectively we used money that should have been paid in tax to buy Matt Harrold? At least we all know who to blame.