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Football team face liquidation for tax debts

Published on 10 Feb 2010 under category: legal

An Essex football team may be liquidated next week after failing to pay a £205,000 tax bill.

Southend United paid HM Revenue & Customs (HMRC) an outstanding bill of £2.1 million last month, but now claim that they overpaid by £205,000.

HMRC disputed the amount and launched a petition for the unpaid debt in December.

The League One club released a statement on the matter to their supporters, saying that the action by HMRC was "wholly unnecessary".

They said that they chose to withhold the money on "analysis of the sums (primarily interest and surcharges)."

However, the "Shrimpers" made clear that they will continue to make their repayments on the due dates.

The government taxation agency has reportedly taken on a tougher approach to football teams, with two other clubs including Portsmouth and Cardiff facing winding-up hearings on Wednesday.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.