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

[Royal Biscuitman]

Do you pay tax on transfer fees?

You pay tax on company profits, so if at the end of the year you have made a profit due to transfers you would pay company tax.

I don't actually know if player registrations attract VAT, certainly clubs would be VAT registered and so would agents if they are based in the UK and VAT registered.... my guess is they would. You pay VAT on purchases and charge it on Sales, add them together and pay the balance over to the tax man.

[Royal Rother]

Yes, VAT is paid on Tfr fees.

[Ian Royal]

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?

No, that's not what he's saying.

[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?

No, that's not what he's saying.

cool, explain what he meant then as I still read it that way.

[notloyalenuffroyal]

Do you pay tax on transfer fees?

You pay tax on company profits, so if at the end of the year you have made a profit due to transfers you would pay company tax.

I don't actually know if player registrations attract VAT, certainly clubs would be VAT registered and so would agents if they are based in the UK and VAT registered.... my guess is they would. You pay VAT on purchases and charge it on Sales, add them together and pay the balance over to the tax man.

Thanks. That's a lot of VAT.

[TheLawnMowerMan]

Do you pay tax on transfer fees?

You pay tax on company profits, so if at the end of the year you have made a profit due to transfers you would pay company tax.

I don't actually know if player registrations attract VAT, certainly clubs would be VAT registered and so would agents if they are based in the UK and VAT registered.... my guess is they would. You pay VAT on purchases and charge it on Sales, add them together and pay the balance over to the tax man.

Thanks. That's a lot of VAT.

VAT is only a tax on non-VAT registered entities, like the general public.
Most companies don't actually pay VAT and it is irrelevant in most cases - they just collect it on behalf of HMRC.

[Royal Biscuitman]

You pay tax on company profits, so if at the end of the year you have made a profit due to transfers you would pay company tax.

I don't actually know if player registrations attract VAT, certainly clubs would be VAT registered and so would agents if they are based in the UK and VAT registered.... my guess is they would. You pay VAT on purchases and charge it on Sales, add them together and pay the balance over to the tax man.

Thanks. That's a lot of VAT.

VAT is only a tax on non-VAT registered entities, like the general public.
Most companies don't actually pay VAT and it is irrelevant in most cases - they just collect it on behalf of HMRC.

They collect VAT on behalf of HMRC, the problems occur when they have to pay this over and find they've spent it on other things.

[ZacNaloen]

cool, explain what he meant then as I still read it that way.

That if Anton hadn't of had his money taken away*, and so was able to support the level of expenditure he'd committed us to we would still be a well run club.
Increasing debt, if it's with a sustainable aim isn't a bad thing.

Madejski was covered us to tune of 6 million a year for several years in a row because we were spending more than we had prior to first promotion.

And even after coming down it was still an issue, which is why we had to sell players.

Being committed to more wages/expenses than we can afford has been a problem for most of the last 10 years. It isn't a sign of a badly run club. All Anton was doing was resuming what Madejski had decided he no longer could afford to do... but then discovered he couldn't afford it either.

A badly run club would be one that does that but doesn't have any saleable assets to cover that blackhole. Luckily that's never been an issue for us.

[Green]

Being committed to more wages/expenses than we can afford has been a problem for most of the last 10 years. It isn't a sign of a badly run club.

I guess there are different schools of thought on this one.

To compete with the big boys it might be inevitable but it's hardly a textbook guide on how to run a business (which this football club ultimately is).

[ZacNaloen]

No, it's the big difference between football and a real business. Football clubs buy players, pay them a exorbinate wage and the good ones try to break even on the player sales.

Badly run clubs have no break even plan, they just spend spend spend.

In a real business the investors expect that investment to turn into profit, but they are able to keep wages under control except at the executive level and in the banks it seems
But I think there is a certain amount of cronyism there (And I suppose the pool of sociopaths necessary for those sorts of jobs isn't that large)
Until the wages situation is addressed I don't think a football club can ever be run like a real business.

But that has to come from higher than football clubs and it needs to be world wide.

[Green]

Like I said, different schools of thought.

The wages situation can never be addressed unless clubs start balancing their books.

[ZacNaloen]

There's always going to be that one owner who doesn't give a shit about balancing the books and distorts the wages structure though...

[Green]

There's always going to be that one owner who doesn't give a shit about balancing the books and distorts the wages structure though...

And seemingly always supporters willing to pay over the odds to help maintain this status quo.

All I'll say is that I'm not one of them.

[ZacNaloen]

Me either, I wouldn't pay more than I do today.