Portsmouth were this afternoon officially issued with the winding up petition relating to £1.6 million in PAYE not paid to HMRC. Speaking at the weekend, Andrew Andronikou, joint-administrator for Pompey’s parent company Convers Sports Initiatives, said the situation could lead to player sales with the Blues having made two unsuccessful bids for Joel Ward (pictured) and Jason Pearce over the last 10 days.
We understand that talks have continued between the two clubs since the second bid — believed to be £1.6 million - was turned down yesterday and an increased offer is likely. Leicester continue to be linked with the duo, or in one report today just central defender Pearce.
The winding up petition means Pompey’s other creditors will now make contact with HMRC’s solicitors and will join them in going to court to ask for payment.
Speaking to the Portsmouth News at the weekend, Andronikou, who continues to search for a new owner for the club after last week’s proposed takeover broke down, said the current situation isn’t likely to see the club go into administration: "Administration is not on the cards and it is the last thing we would consider. I can say that the club has not got significant debts, it has significant cash flow issues.”
HMRC said in a statement: "Ensuring tax is paid on time should be at the centre of a football club’s business strategy, just as it should be for any other enterprise.
"Any business that regards paying tax as an optional extra after other expenses are met, or that uses tax collected from employees or customers as working capital, is potentially heading for trouble.
"It is only fair to those clubs and to other taxpayers who do meet their obligations that HMRC enforces payment of tax debts owed — and if need be, issues a winding up petition or seeks to appoint an administrator.
"There is little HMRC can do for a business - be it a football club or not - whose viability is dependent either on not paying the UK taxes to which they are liable, or on special treatment not available to other customers with similar tax affairs.”
Story syndicated from TWTD.co.uk