AFC Telford United have lost their court battle over late VAT payments. The club had complained that HM Revenue & Customs (HMRC) had unfairly imposed surcharges of approximately £2,500 after they paid VAT bills, totalling £40,000 were, late.
Officials of the club have said they gave warning that the payments would be late and as a result shouldn’t be penalised. However, a specialist judge has ruled against AFC Telford after a tribunal hearing in Birmingham.
In November the club announced that they would be selling shares and changing the ownership model so they would now allow external investment. Nevertheless, no one person or company would be able to purchase over 20% of the shares during the three-week sale.
In a statement to clarify their position the club said "As has previously been documented AFC Telford United were subject to an erroneous winding up order brought by HMRC, this was dismissed by the court. The winding up order was brought by HMRC in 2015 as the football club was late in paying part of a VAT liability to HMRC, the football club had paid part of the VAT liability on time.”
They added "As some of the liability was paid a few days late HMRC issued penalty notices for late payment. The football club appealed against those penalties and eventually this appeal was heard by HMRC Court & Tribunal service. Although the Court & Tribunal service expressed sympathy to the football club it advised that it was tied by the legislation that stated if VAT was paid late and outside a “time to pay scheme” then the penalties could not be cancelled. The amount of the penalties totals £2,570. The only amount owing by the football club to HMRC are these penalties of £2,570.”