So they've got £1.5M to pay over 3 years. Roll on May 2013!
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So they've got £1.5M to pay over 3 years. Roll on May 2013!
i'm guessing mcglynns war-chest wont be able to cover any world cup stars next season then:faf:
Really can't see Hearts fans (or reporters) spinning this as good news.
So when Hearts advertise their seasons for 2013/14 season, straight away their fans know that £500K goes straight to their 'new signing' HMRC :greengrin - yet reporters say Hearts can move on 'with certainty' - not really, they still have to pay the many many unpaid bills they have just now and the monies due to players, HMRC etc for this season (and next).
Any reduction of that value to their transfer budget is very pleasing :agree: This has been a very good week for Hibs :aok:
And CWG/GG/Cav Green - does this now make Hearts officially 'tax dodgers' :greengrin ?
From May 2013 they'll pay back £42000 a month. Surely this is just delaying the inevitable!? Hoping to find a buyer but when that's not forthcoming what will they do?
HMRC 1 HMFC 0
HFC 1 HMFC 0
Hector knows the score.
:grr: Never mind that, the Megasuperhotelstadium, what about the Megasuperhotelstadium - surely that will go ahead? they sent a massive box of drawings to the council :confused:
I suspect the Yams will be told that what he meant was that lightbulb in the coridor behind the stand would be replaced.
Brokeback are delighted to have to pay something like £9500 extra for the next 3 years.
If they don't pick up 10 points before their main players get emptied in January I fancy them to go down this season.
Its like rearranging the deck chairs on the titanic
Since when was HMRC a bank?
3,5 years+ to settle a debt
incredible.
On the contrary, they're loving it over there. They also lapped up our disappointing but totally manageable £900k loss when the accounts came out, losing sight of the fact that they've been losing £8m pa in recent years. It shows that they still still haven't grasped just how deep their club's troubles really are. £1.5m liability out of nowhere? brilliant news.
And yes, they're tax dodgers that got caught.
They are making out this is good news. Only last week they thought they were going to win the case. Now they have accepted defeat and made a payment agreement. They are already running at a loss and now you can add on an extra 500k a year on to that loss.
So 500K due in May. Not the straight to liquidation I was hoping for but I think HMRC are playing a canny game here attempting to wring as much out of the dying corpse as they can. Even if they survive this season that's the first 2500 ST sales* for the next 2 seasons going straight into Hector's hipper.
For this season, that's almost all of the bake sale money already accounted for so they've filled in one hole but dug another one just as big.
Happy days. :wink:
*assuming they can clear an average £200 per ST.
Is it just me or is that deal - relative to what it could have been - a relatively spawny, weaseled deal in favour of Hearts? Could HMRC not just have gone, "right, roond yeez, £1.75 million before this tax year ends" or similar.
Still, given as they are effectively starting each season on -£500,000 before a penny in wages, overheads, servicing the Vladdebt etc is paid, the future is far from rosy for our pink chums.
Any potential buyers will be happy at paying £40000 a month just for a tax bill.
Wonder what the wage bill will be for them at the start of next season.
For me this is great news i dont want them to die i want many more games like Sunday. They can die by getting relagated.
"Roon yez" would've resulted in £0 for Hector as they'd have gone straight to the liquidiser and Vlad's securities would keep all the asset value. I think they have spawned it a wee bit but it's still another big chain on their ankles.
I think best case for them is they'll be sold to some no-mark for a few million with the UBIG debt written off, this liability still in place, UBIG owning Tiny and charging £1M a season, the rent to pay at Riccarton, the repair bills for their crumbling stand, etc, etc.
Also any potential buyer will need to pay rent to Vlad the Hibee every month for the stadium as he aint going to hand it over, mmm im sure he wont be wanting too much ;0)
So huge debts and no assets!!!
Not really. HMRC aren't daft. They would have got zip if they'd played that game.
This way, there is a chance that they will get some of that money.... and they also have the moral high ground of having been seen to help preserve jobs and future revenue for the Treasury.
Can anyone find the quote from hearts that said they would fight the tax case as hard as possible.
Now they are pleased to announce they lay back and took it.
So presumably they will be under pressure to pay all remaining tax and VAT on time? The amount paid yesterday - was that a previous bill? They must be due to pay another one soon.
This seems like a bad result for them but they are delighted on kickback.
At £42,000 a month it is equivalent to 3 top earners at Hibs or Aberdeen. With all their other liabilities including maintenance on their decrepit stadium and their smaller turnover they will be crippled for years.
And I still don't think they will make it to the end of the season.
There will still be more twists and turns in this saga yet. Hearts may see this as a good thing and to be honest it could of been worse, but at the end of the day thats just more debt they have racked up. They still have to pay all their players last months wages, this months will be due in a couple of weeks and also PAYE for October, November and December before they will surely try to cut the wage bill in January. And in May next year they will have 0.5 million to pay hector. All this at a time when their team are doing ***** and look like they could be serious candidates for relegation especially if they lose some of their better players next month.
In summary the good times are over for them
Doesn't seem like HMRC tactics with tax avoiders. Reduce the amount and agree payment plan? Stinks of back room political interference.
Now that Hearts have this extra £.5m per year on top of the tax they struggle to pay at moment what will happen next time they default?
And hopefully some of their other creditors will see this as a good time to get their final demands in.
I can understand no one wanting to be the one responsible for their liquidation but bills have to be paid. There will be gas, electricity, our Council's Business Rates and Rent, and all the rest in the in-tray.
The phones will be ringing at the PBS
Would you prefer that the taxpayer got nothing, and that staff went on the dole? Because that would have been the case had HMRC not adopted the approach they have.
In recent years, HMRC have been much smarter in cases like this.... keep the patient alive, whilst taking their pound of flesh, instead of shutting them down and getting nothing, whilst costing the State in benefits. That's a result of two things..1. a more commercially aware attitude on their part. 2. the removal of their status as preferred creditor in liquidations.
Make no mistake, this is an excellent result for Hearts regarding their tax case.
To have it reduced from (potentially) over £2m to only £1.5m, and 3 years to pay it off is a huge step towards them being able to make it to the end of the season.
This is the main aspect of their financial troubles.
You just need to spend a couple of minutes doing the sums and you will see that, probably by the start of next season, they will have to survive on a player budget similar to the teams at the lower end of the SPL.
If, as he states, Vlad is no longer going to fund Hearts and they need to work within their financial restraints, then a potential annual debt liability of £2m (interest charges, debt servicing, tax liabilities, etc.) is a huge chunk off their potential wage pot. And that's not including the issues with the main stand, which seems to be causing further financial concern at the moment.
I'll be perfectly honest in answer tae that if I may. Wouldnae have bothered me in the slightest, I wanted tae see that club squashed. No sure how much they will see anyway, they cannae pay what they have tae now, I dinnae ken why anybody thinks they'll now be able tae pay mair.
I didn't say that.
Had HMRC put the company under, there would have been redundancies at HMFC. Those non-playing staff who couldn't find other jobs would have to go on benefits.
Double-whammy for us. No tax income, and benefits expense.
... and that's the nub of the arguments on here. There is the emotional response, which is that we all want to see them suffer or die; that's what football rivalry is about. There is also the "greater-good" argument, which is about social responsibility.
Both are valid, IMO.
their only hope of getting back to being a competitive force again any time soon is to slash the wage bill in january and again in the summer and hope that they can stay in the spl and develop saleable assets- ie paterson walker, mchattie etc. Long shot really as although they're promising players their development isn't going to be helped by being played every week with fewer experienced players in the squad to help bring them on. that kind of pressure isnt good for the confidence of young players. I think their chances of a golden generation are low and that they're going to be screwed for a good few seasons at least. i bet they still won't learn their lesson though. nae luck jambos:na na:
It will be interesting to see what they do with their high wage earners. Common sense would say that they have to shift them from the club in January, no matter what transfer fee they get. They also cannot take the risk of playing these players during January, for fear that they get injured and have the triple whammy of no transfer fee, paying high wage earners not to play and medical bills.
I could not understand why they didn't get rid of them during last season's January window.
Looks like it is a weakened Hertz team in the SPL (or lower) for years to come. Result!
So they have just paid HMRC £450,000 are due another £500,000 in May, received £300,000 from The Rangers and have raised £600,000 from the share issue ...... Hmmm
By my sums they are still £50,000 short and still have 2 months players salaries to cough up, no further income from the Scottish cup ( aw shame ) but an Easter rd semi which should net them about £250,000 - tax. They are living on a knife edge, oops forgot they have a £24m debt to service as well. I would say that it is not looking too healthy down Tinhutcastle way ......
They also still have the problem of financing the redevelopment of their death-trap, accident-waiting-to-happen main stand. Surely, even this Jambo council can't go on renewing safety certificates indefinitely.
I would imagine that they will try to renegotiate the contracts of the highest earners and offer them 30% or so of what they are currently on.
and if the do pick up those points, there will no doubt be win bonuses due to be paid to their players.
Was in a taxi from Edinburgh airport on Friday when the driver was saying he is mates with something at Swinie (can't remember who now, did at the time and it was an ex player I think on the coaching staff now maybe, jet lag is still scrambling my brain) anyway, he was saying that Sutton is on £3,000 a week appearance money and that the yams just can't afford to play himand are desperate to offload him. I know he came on on Sunday so maybe that's another £3000 out of their coffers :greengrin
Don't know how true this is BTW, you know what taxi drivers are like :duck: :greengrin
Also sort of on this point. Given that there is still an investigation into dual contracts at oldcogers does this arrangement the yams have come to mean they are effectively owning up to deploying dual contracts for their employees? Is this £1.5m tax they should have paid on the Lith contracts? If so should we be expecting an SPL investigation?
There has been no suggestion, other than on here, that the tax case has been about dual contracts.
Thread hijack, I know, but don't get me started on Osborne. HMRC can only work with the tools they have been given by Government. It's the Government that make the tax laws in the first place, and the Government that have been cutting HMRC's resources for years.
Given they don't have to start paying it until May, could it be they do not ever expect or intend to pay it.
They will get nowhere near £250000 from the semi. They end up with around one third of gate receipts and will be very lucky to get £100k.
This was a tax bill Hearts were very confident of not having to pay and although they will be happy with the three year deal it is still a big hole in their fragile finances. The equivalent of 5 players on £2k per week.
Nah, for me it ties in with my theory that they have been playing "French cricket" for months.... ie buying time in the hope that they can either find a mug (sorry, buyer) or else milk as much cash as they can until they really do have to circle the wagons.
Fire-sale in January or letting lots of players go at the end of the season, while relying on youth to plug the gaps. If their kids are anything like Patterson or McHattie they will toil and will be a poor side. In fact, they are already a poor side.
I'll take that.
I'm a bit disappointed nothing has been made public about the alleged damage to the south stand. Let the rest of Scotland see them for what they are, and remove any sympathy for them that's out there.
Paying £500,000 in may will not be a problem for them. They'll be able to pay it out of their Scottish Cup run. Oh, wait a minute ................................:fenlon
This is a strange argument. Should you not send a violent criminal to jail because (a) it costs taxpayers money and (2) it would be less work for medical staff at A&E?
And wotaboot the "pour encourager les autres" principle?
As has been pointed out above, the approach Hector appears to have taken in this case is to act as a bank. HOMFC have spent money they should have given to Hector, and are being allowed to pay it back at a very leisurely pace with interest but NO PENALTIES. Sucks.
I thought the yams had disputed whether they should pay this tax bill. So if this is just unpaid tax then it must go back a signficant period of time. Certainly it meant they could pay players more than their rivals and gain an advantage for that period of time.
It's on one of the other threads so best discussed there. I was thinking for this thread more along the lines of they've got the begging bowls out to help them survive but trash ER, which they'll have to pay for ... these costs have to be made public! Far more interesting than Gary O's latest escapade!
They disputed it, for sure, and it does go back a number of years (as evidenced in the accounts). However, like I say, nobody outside of those involved in the case KNOWS what it is about; all we can do is speculate.
And, of course, for the next few years they have to pay their players less than their rivals. :greengrin
HMRC have a dual responsibility, and are often torn between the two. On one hand they have to maximise the income to the Treasury, and on the other they have to be seen to uphold the law.
The two don't always sit well together. However, in recent years, I have definitely seen a trend towards the first... and that's understandable in the current climate. Whether it's "right", of course, is an argument that could go on for a long time.
One further point, though. We only have Hearts' word for it that there were no penalties. Given the nature of that website, I wouldn't take that as gospel. Of course, HMRC won't tell us, but for all we know it could be the case that the tax bill is £1m and the penalties 500k.
This is probably better than liquidation in a way, on several levels:
1. HMRC will get some money, better for the country than it all heading for a submarine in the Baltic Sea. Sure they are celebrating, but from now on surely a missed payment for any of their tax liabilities will have them headed for the blender?
2. They are going to be weak. They think they are weak just now, wait till their core of pricey players are gone.
3. They are still idiots, it wouldn't surprise me at all if they shift most of their pricey players then bring Skackel back on deadline day. I for one would love this; we could hammer a team comprised of him and a bunch of kids.
4. Paying that first instalment in May will take a huge chunk out of next seasons ST money, so they'll be an even worse mess next season than they are currently.
5. Excluding this amount, Romanov's lackey reckoned the fans needed to cough up 2 million to survive the season, they now need 500k more (though I think they use next seasons ST money, expect them to go on sale stupidly early), so the fans haven't even raised a third of the total they need to survive.
But why would it? Now that Hector has indicated that he is willing to bend to the argument that the prospect of some money is always better than none, there can shirley never be a point when it is better to liquidise than to allow to continue intermittently defaulting. It's not as if Hector is going to reach a point when he simply won't stand for HOMFC taking the pish, because that's what they've already been doing for long enough.
I suspect that there will be another winding-up application soon.
October's PAYE is, apparently, late. November's is due soon, albeit at reduced amounts. December's, if it includes the deferred wages being paid up, will be due in January and it will be a big one. There will be a VAT bill due in early January too.
I would have thought they would be doing deals to move players on from 1st January, as they can't afford to pay them on January, and will need to move them at the start, rather than the end of the window
So would it be more or less fair to say that both deep throat and Disney swallow were correct with their most recent leaks?
I cannot stand these tossers as much as the next person and ask me a few months ago would have said let them die as soon as possible....however after witnessing their off the field problems coupled with the issues they shall face over the next few years has forced me to change my mind.
Watching the game on Sunday we were utter gash in every sense. We can and have played better, our league form and position tells you this. We still beat them though and kept a clean sheet.
They on the other hand played as well as they could given the limited squad they have. No strikers, young lads all over the park and a team generally held together and built on their defence. Come January i would expect to see any player of worth to be sold and replaced by an inferior player or youngster thus weakening the team.
A team incidentally managed by a completely and utterly inept moron who is out of his depth. The best of it though? They cannot afford to sack him. Vlad has emptied managers for far less.
So what do we have left? Terrible manager, fire sale impending and a precarious league position with no signs of improvement.
Watching the next 6 months or 6 years unfold will be far more interesting and funny than watching them disappear entirely.
Used to work in a bank years ago. The amount of businesses I saw that were struggling was incredible. Many of them were good guys that just hadn't adapted to change, many that had just grown too quickley and weren't able to keep it going and some had been bumped by someone who had done the dirty on them. Each month they would be robbing Peter to pay Paul as the business "would be back to normal" soon. For many businesses they held on far too long and just hurt themselves and their families all the more.
Eventually they couldn't carry on spinning all the plates and it would come crashing down.
Suspect Hearts are in this position as they add another wobbly plate to the show..............................tick,tock
(Personally I want it to happen sooner rather than later though.)
Are they now going to reimburse the kids who tore up their Christmas lists to keep them afloat?
This club really is below contempt. Don't imagine for one minute we've heard the last of their begging-bowl antics.
So they can't afford the players they already have yet there going to have another 10k a week to pay out for the next 3 years? If they're serious about cutting back then this news should surely mean losing an extra 4 or 5 on top of what was originally planned. Aye jambos, that's great news.
There's plenty for them to be worried about after reading that!Quote:
Time to act
04.12.2012
The sterling efforts of the Hearts supporters have seen the club reduce its projected deficit of £2million between now and the end of the season by almost 50 per cent, director Sergejus Fedotovas revealed today.
The Gorgie faithful's response to the 2012 Share Issue has helped Heart of Midlothian stave off a recent threat of liquidation. Fans have until Wednesday, December 19 to continue to purchase shares and Sergejus revealed that, despite the amount of work already done, the volume of business over the next two weeks remains critical to the club's financial stability as it heads into 2013.
Speaking to Hearts News, he said: "Words cannot express how grateful we are to those people who have already contributed to the share scheme. Their sacrifices in difficult times have been appreciated by everyone.
"But with just two weeks now remaining to buy shares, time is running out. The Share Issue is designed to create stability and it is important to achieve the targets we have set.
"We would urge those supporters, and particularly those in the corporate sector, to act now if they have not done so already. Much work lies ahead and the window of opportunity for supporters to play their part is closing quickly.
"Unless these targets are hit, going forward we forecast that there will be further battles ahead when it comes to timely payment of bills.
"In this scenario, we will be forced again to look at what we can do with our cost base as all revenue streams are sweating at the moment and there is no reasonable expectation that we can bring significantly more revenue to the club at this moment."
The club was pleased with the resolution to the tax tribunal, which was announced on the club website earlier today.
And Sergejus expressed his hope that this latest settlement with HMRC will encourage previously hesitant fans to participate in the Share Issue.
He said: "The resolution of this dispute gives us a positive nod to expect that those supporters who were wary of the immediate effect on the club of the tax case can now step forward in confidence.
"We are keeping our promise to keep this club alive and we have the results - the petition was agreed and paid, the tax case is resolved.
"It is good to know that we are not alone in our ambitions but we need more involvement as we are in far from good shape and the recent Scottish Cup result is the best evidence of this.
"Now, more than ever before, is the time for our fans everywhere to stand up and be counted."
**** it! This thread is getting copied, pasted and printed. Once the inevitable happens, it will give me a warm glow inside for years to come just browsing through this.
How does that fellow keep a straight face when he puts in the token reference in every statement regarding how the Hearts fans need to continue "to be counted", which basically means "continue to brass up ya plums".
Johnny Jambo in the street has - granted very, very late in the day - brassed up plenty. What a bunch of comedy shysters the Hearts board are, but they've got the leadership they deserve I guess.