3 Jun 2010HMRC challenges football creditor rule

Football Finance News | Football Leagues/ Association and Governance

HM Revenue and Customs (HMRC) appears set to lodge a formal complaint against the rule which allows players to continue to take money out of football clubs while small businesses and other organisations go largely unpaid.

At its upcoming annual general meeting, the English Premier League are reportedly preparing to inform members that HMRC is seeking to scrap the current football creditor legislation following a spate of insolvencies in the sport.

A spokesperson for the tax office told the Guardian: "There is no legal basis for the football creditor rule. Non-football creditors are being seriously short-changed and enough is enough."

The news comes after HMRC claimed £35 million from debt-stricken south coast outfit Portsmouth, while Championship side Preston North End were also issued with a winding-up petition last month after failing to pay an outstanding tax bill.

English Premier League chiefs are expected to fiercely oppose any effort to change the existing guidelines, which they believe could further jeopardise the sport's already fragile financial situation.

Written by Tom Jenkins

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