Embargos, HMRC Payment defaults, non payment of wages, the usual under Dai Wrongge

[Lower West]

Finances must be hanging by a thread. Without rapid stabilisation the season maybe over before it's even started. Dropping to League 2 would result in yet further financial curtailment.

[DelBoyRodders]

Dai Yongge is a cunt - and so is Pang.
Get them both out of the club!

[Lower West]

Presumably this relates to the PAYE tax on salaries payable at the end of June. I have never worked in a finance department, so I don't know how it works. My guess is that if someone's salary is £50k per month and you have to transfer that sum from an offshore account, you would transfer £50k and that the finance team would arrange to pay (say) £35k to the individual, with the tax, NI, pension, etc being disbursed as necessary. Which makes me wonder... is Dai not transferring the correct sums, or is the finance team not making the appropriate disbursals? Hoping we have someone on HNA who can shed some light...

All down to having cash in the bank to pay creditors as they fall due. Bluntly put , Dai is struggling to find the money to fund the club.

[Sanguine]

Presumably this relates to the PAYE tax on salaries payable at the end of June. I have never worked in a finance department, so I don't know how it works. My guess is that if someone's salary is £50k per month and you have to transfer that sum from an offshore account, you would transfer £50k and that the finance team would arrange to pay (say) £35k to the individual, with the tax, NI, pension, etc being disbursed as necessary. Which makes me wonder... is Dai not transferring the correct sums, or is the finance team not making the appropriate disbursals? Hoping we have someone on HNA who can shed some light...

Correct, tax due is payable to HMRC by 22nd of the month following the salary payments.

I've no real world insight into RFC, but this is highly unlikely to be a finance process issue. You need cash at hand to pay for things, and we are repeatedly finding ourselves without enough cash to pay this bill on or by 22nd. This suggests that Dai can't access enough funds. Next of course he'll need to pay the players again at the end of July. With cash.

[Stranded]

Not on EFL website!!!!

You're not on the EFL website.

BBC's Lewis Coombes has tweeted to say that a club has 2 working days to pay the outstanding to avoid the embargo. Not sure when that clock started though.

22nd is PAYE deadline, that was Saturday, so I assume the "real" deadline was Monday. So if Tuesday is when it became late, we would have until tomorrow to pay before the embargo kicks in.

[Norfolk Royal]

As anyone in business in the UK will know, once you can't pay your HMRC bill on a regular basis, the game is up.

[Royal_jimmy]

This is going to be the way it is until additional investment on a full sale.

Tax paid late > Embargo > Tax paid > embargo lifted > tax paid late

it's just exhausting and in a stroke any positive feeling brought on by the last week is undone.

Makes yesterday's team v QPR make more sense as Selles is going to have to count on those and we will no doubt miss out on targets.

The only plus point would be if we are still able to sign free agents.

Yes it all makes sense.

It's reasonable to say if you can't pay HMRC then you can't sign anyone, even free transfers. HMRC must be paid first if any money is available, not signings.

[Clyde1998]

Presumably this relates to the PAYE tax on salaries payable at the end of June. I have never worked in a finance department, so I don't know how it works. My guess is that if someone's salary is £50k per month and you have to transfer that sum from an offshore account, you would transfer £50k and that the finance team would arrange to pay (say) £35k to the individual, with the tax, NI, pension, etc being disbursed as necessary. Which makes me wonder... is Dai not transferring the correct sums, or is the finance team not making the appropriate disbursals? Hoping we have someone on HNA who can shed some light...

Anyone know the timescale between the wages being paid and needing to pay PAYE to HMRC?

[blythspartan]

This is probably my last dredge of optimism, but you’d think Bowen and co all knew this was happening. Surely, Savage along with the other signings would not have signed for us unless we have secured some financial backing.

[BarryWhiteRFC]

This is probably my last dredge of optimism, but you’d think Bowen and co all knew this was happening. Surely, Savage along with the other signings would not have signed for us unless we have secured some financial backing.

I mean, I bet Dai has certainly told a few lies in his time. He might even be lying to Bowen et al. This is the issue everyone has, we just know nothing.

[Elm Park Kid]

9k season tickets at say an average of £300 after VAT would be £2.7m.

League One teams get roughly £1.4m a season from the 'pot' most of which (I think) is paid in July.

We'd have gotten some sponsorship money this month as a big chunk of that is given before the season starts.

We got some Puscas money (I think).

We shouldn't be reliant on Dai putting any money into the club for a good few months in order to just pay our standard bills. It's really difficult to understand what is going on.

[Brogue]

9k season tickets at say an average of £300 after VAT would be £2.7m.

League One teams get roughly £1.4m a season from the 'pot' most of which (I think) is paid in July.

We'd have gotten some sponsorship money this month as a big chunk of that is given before the season starts.

We got some Puscas money (I think).

We shouldn't be reliant on Dai putting any money into the club for a good few months in order to just pay our standard bills. It's really difficult to understand what is going on.

+ the 600k for the youngster moving to city

[3points]

This is probably my last dredge of optimism, but you’d think Bowen and co all knew this was happening. Surely, Savage along with the other signings would not have signed for us unless we have secured some financial backing.

yes, if wages are paid prior to the month end (eg 29 June) then PAYE is payable on 22nd of the month following (if paid by funds transfer - technically it's the 19th if paid by cheque).

Might explain why Savage deal was announced over the weekend as the club knew it was going to default the payment on Monday this week (being the first working day after the 22nd) and needed to get it done quickly.

[Lower West]

9k season tickets at say an average of £300 after VAT would be £2.7m.

League One teams get roughly £1.4m a season from the 'pot' most of which (I think) is paid in July.

We'd have gotten some sponsorship money this month as a big chunk of that is given before the season starts.

We got some Puscas money (I think).

We shouldn't be reliant on Dai putting any money into the club for a good few months in order to just pay our standard bills. It's really difficult to understand what is going on.

The issues date back a year at least. They didn't start in May 2023. Clarifies why Ince was lied to. Dai rolled the dice that Championship status would be maintained. Kept the 6 point deduction under wraps and had no intention of selling off prized assets to keep to the agreement.

[Hound]

9k season tickets at say an average of £300 after VAT would be £2.7m.

League One teams get roughly £1.4m a season from the 'pot' most of which (I think) is paid in July.

We'd have gotten some sponsorship money this month as a big chunk of that is given before the season starts.

We got some Puscas money (I think).

We shouldn't be reliant on Dai putting any money into the club for a good few months in order to just pay our standard bills. It's really difficult to understand what is going on.

Yeah this is one of the confusing/worrying things. If we can’t get our hands in cash now, when will be able to? Should have plenty in the bank atm

[Elm Park Kid]

9k season tickets at say an average of £300 after VAT would be £2.7m.

League One teams get roughly £1.4m a season from the 'pot' most of which (I think) is paid in July.

We'd have gotten some sponsorship money this month as a big chunk of that is given before the season starts.

We got some Puscas money (I think).

We shouldn't be reliant on Dai putting any money into the club for a good few months in order to just pay our standard bills. It's really difficult to understand what is going on.

The issues date back a year at least. They didn't start in May 2023. Clarifies why Ince was lied to. Dai rolled the dice that Championship status would be maintained. Kept the 6 point deduction under wraps and had no intention of selling off prized assets to keep to the agreement.

Yeah, I completely acknowledge that our finances are in a bad way if Dai isn't willing/able to fund us. I half expected us to be in administration before Christmas. But, it doesn't make sense that we'd be unable pay this months bill unless:
1. This is a strategic decision to not pay tax so that we have money for ongoing operations. The sale of Derby really blunted the fear that clubs have of HMRC.
2. We have had to use ALL our current income to pay of previous debts.

[SouthDownsRoyal]

Not on EFL website!!!!

You're not on the EFL website.

Lol

[Millsy]

Thanks ants.

Thants.

[Snowflake Royal]

Every time there's an iota of good news that pcunt Dai comes along and kicks us all in the bollocks again.

Just oxf*rd off you incompetent arseclown.

[Forever Royal]

The running of this club can only be described as shambolic. If only SJM could come back to run things properly.