League Two side Notts County have become the subject of a winding up order. The action has been taken by HMRC (aka the Taxman) due to late payment of taxes that will almost certainly relate to payroll Income Tax and National Insurance contributions. The action taken is unrelated to yesterday's news concerning Paragon Interiors, but will indirectly show that cashflow problems in both companies are now starting to bite.
Notts County have claimed that their tax payments became overdue three weeks ago, and that they'd offered a repayment plan commencing February 21st that would resolve the debt issue over a four week period. However, the general attitude of HMRC over the years has been to treat football clubs as high risk debtors with a habit of kicking the can down the road with respect to tax payments. Hence although Notts County have complained that HMRC's actions are "an extremely aggressive approach", they have confirmed that a winding up order has been issued against the Meadow Lane club, which will now be listed, and lead to a court appearance.
Provided Notts County can repay the HMRC debt by the day of their court appearance, and no other creditors step forward to make their own submissions, Notts County would be able to dissolve the claim. The club say in their statement that the debt will be settled by the day of the court case, although don't say when that will be. They also claim that Paragon's administrators are "supportive" of Alan Hardy's attempts to sell Notts County FC, although don't reveal what might happen if the £7 million that the Magpies owe Paragon was not repaid within the period that the administrators intend to allow for the Interior Design company to restructure its debts. This may become a ticking clock.
Comment on this News Item on Facebook
or Go back to Top of Page