Embargo

[vvm]

https://twitter.com/BBCLancsSport/statu ... gr%5Etweet

"Morecambe have been placed under embargo by the EFL.

It relates to Regulation 17.3 - Amounts due to HMRC.

Chief Executive, Ben Sadler has told us...

'The circumstances around this issue are unusual following an assessment and we are working with the EFL & HMRC to resolve the matter as soon as possible.'"

[Old Man Kensey]

Well that's a worry.
Hope its just an Admin error or oversight.
HMRC don't have much of a sense of humour when you owe them money.

[Keith]

Why isn't there anything on the official website? Surely this is news that requires an explanation (and more than simply the statement to Radio Lancashire). HMRC don't care if they put a company out of business, so it is no exaggeration to say this is a potentially existential crisis.

[Old Man Kensey]

Why isn't there anything on the official website? Surely this is news that requires an explanation (and more than simply the statement to Radio Lancashire). HMRC don't care if they put a company out of business, so it is no exaggeration to say this is a potentially existential crisis.

Have to agree, a statement is the very least we deserve.

https://www.beyondradio.co.uk/news/loca ... -tax-bill/

No comment from the club on this link and sounds like the embargo started a week ago!

[fulwoodshrimp]

It serves as a reminder of how close we are to disaster until the ownership is settled. We keep pretending there is interest in buying the club but never any result. We seem to be walking a fine line and trouble with HMRC is not a good development!

[Keith]

"This means that the club are prevented strengthening their team or adding to its playing staff..."

How long has Ged been without an assistant manager? And he won't be getting one now. Why are the club always a failure when it comes to the media? They knew this smelly-stuff was about to hit the fan, so at minimum, they should have had a response that was ready to go as soon as it did, or even, before.

[Old Man Kensey]

'No Comment' is disrespectful to us the fans, what happened to all the promised openness from the recent Fans Forum?

[Andy D]

From Beyond Radio, apparently this came about last week

Morecambe Football Club has been placed under embargo from the English Football League over payments due to HMRC.

The Shrimps have failed to comply with EFL regulation 17.3 – relating specifically to amounts due to HMRC.

This means that the club are prevented strengthening their team or adding to its playing staff costs until such time as it has met its existing financial obligations and/or the club has rectified the relevant breach to the EFL’s satisfaction.

Embargoes are intended to operate as a deterrent against clubs defaulting on financial obligations to clubs or players, or breaching other key relevant regulations, such as reporting on financial matters.

It’s understood that the embargo has been in place since last Wednesday.

Morecambe FC has declined to comment formally on the matter.

[Gone_Shrimping]

This will do wonders for the sale of season tickets , Not !

Maybe this on the horizon was the motive for offering 2024/2025 season tickets so early.

[black morse]

This will do wonders for the sale of season tickets , Not !

Maybe this on the horizon was the motive for offering 2024/2025 season tickets so early.

It will also not help to convince players to renew their contracts

[vvm]

Can we even be offering contracts when under an embargo?

[dazza]

we can maybe offer , but i think it would be a desperate man that signs it when i say desperate i mean probably someone whos very unlikely to get anything anywhere else

[KenH]

https://twitter.com/BBCLancsSport/status/1773306587853083060?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet
'The circumstances around this issue are unusual following an assessment and we are working with the EFL & HMRC to resolve the matter as soon as possible.'"

That makes no sense. They're implying it was a surprise! The thing is the only taxes that the club will be paying are VAT and tax/nic on wages. Both are under full control of the club's accounting department and the figures are calculated and reported on a quarterly (VAT) and monthly (PAYE/NIC) basis. So the management will know what is due and when, on an almost continual basis. You don't wait for HMRC to issue statements of how much you owe and when, it's all "self assessment" or "self calculation" these days.

[Angler1]

New owners required ASAP.

[redrobo]

Typical of the way our game is going these days.

Hammer the smaller clubs whilst the bigger clubs get away with murder.

OK slightly different offence between ourselves and Man City but the principal of abiding by the rules is the same.

Am surprised that this has come to light as our Accounts Team surely would have been aware of the problem OR is this just another area in which the owner has caused a problem...

Just mentioned to my wife who 'politely' said she wasn't giving money to the club AND whoever designed the stand in question didn't do a very good job....

[Seasider9601]

Typical of the way our game is going these days.

Hammer the smaller clubs whilst the bigger clubs get away with murder.

OK slightly different offence between ourselves and Man City but the principal of abiding by the rules is the same.

Am surprised that this has come to light as our Accounts Team surely would have been aware of the problem OR is this just another area in which the owner has caused a problem...

Just mentioned to my wife who 'politely' said she wasn't giving money to the club AND whoever designed the stand in question didn't do a very good job....

Did you ask her if she could bail the club out or something, RR ??!!!!

[redrobo]

I've already told her what I intend to do with part of the money I win on EuroMillions....she wasn't at all impressed.....funny that.... as I've already decided to buy her a Fiat 500....or something even smaller...

[Seasider9601]

Explanation from Graham :

https://www.morecambefc.com/news/2024/m ... ham-howse/

[Old Man Kensey]

Well that was simple, why not pop that statement out early and stop us fans from worrying?

[Billy bodger]

From Beyond Radio, apparently this came about last week

Morecambe Football Club has been placed under embargo from the English Football League over payments due to HMRC.

The Shrimps have failed to comply with EFL regulation 17.3 – relating specifically to amounts due to HMRC.

This means that the club are prevented strengthening their team or adding to its playing staff costs until such time as it has met its existing financial obligations and/or the club has rectified the relevant breach to the EFL’s satisfaction.

Embargoes are intended to operate as a deterrent against clubs defaulting on financial obligations to clubs or players, or breaching other key relevant regulations, such as reporting on financial matters.

It’s understood that the embargo has been in place since last Wednesday.

Morecambe FC has declined to comment formally on the matter.

It’s a bit rich the BoD telling us how open they are, we still have the other EFL charge against us, so that’s worrying.

You have to ask who’s going to stay at the Club?

At the meeting with the fans the BoD stated we are an attractive proposition to a perspective buyer, so who will buy??

[RedRedWine]

It does sound strange - presumably this concerns the tax point? HMRC usually views the tax date as invoice date or receipt of cash; whichever comes first (e.g. if you take a deposit for an event/service in the future you should account for the VAT on that deposit at point of receipt, not when it is invoiced at supply point).

If you are invoicing in advance of receipt (offering credit terms) this can mean that you are potentially required to settle VAT liability in advance of the receipt of cash, which can create a timing/cashflow issue - which sounds like what is occurring here... although quite what services a football club is providing 90+ days in advance of receipt is a bit of a mystery.

[twosheds]

From the OWS...

https://www.morecambefc.com/news/2024/m ... ham-howse/

[redrobo]

It does sound strange - presumably this concerns the tax point? HMRC usually views the tax date as invoice date or receipt of cash; whichever comes first (e.g. if you take a deposit for an event/service in the future you should account for the VAT on that deposit at point of receipt, not when it is invoiced at supply point).

If you are invoicing in advance of receipt (offering credit terms) this can mean that you are potentially required to settle VAT liability in advance of the receipt of cash, which can create a timing/cashflow issue - which sounds like what is occurring here... although quite what services a football club is providing 90+ days in advance of receipt is a bit of a mystery.

Wonder if it is anything to do with the show / diner event 'Allo' 'Allo' that is coming to the Maz in July

https://www.morecambefc.com/news/2024/m ... morecambe/

[Keith]

From the OWS...

https://www.morecambefc.com/news/2024/m ... ham-howse/

Why has it taken until gone 4pm to put out a partial statement, when the club have known this was coming for many days? This statement should have been clear, and ready to publish well in advance of the embargo becoming public.

[black morse]

https://twitter.com/BBCLancsSport/status/1773306587853083060?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet
'The circumstances around this issue are unusual following an assessment and we are working with the EFL & HMRC to resolve the matter as soon as possible.'"

That makes no sense. They're implying it was a surprise! The thing is the only taxes that the club will be paying are VAT and tax/nic on wages. Both are under full control of the club's accounting department and the figures are calculated and reported on a quarterly (VAT) and monthly (PAYE/NIC) basis. So the management will know what is due and when, on an almost continual basis. You don't wait for HMRC to issue statements of how much you owe and when, it's all "self assessment" or "self calculation" these days.

I know nothing about VAT but when the club allows season tickets to be purchased in stages over a period of time should they be charging (and paying) Vat at each stage?