The third tranche...

[WXF]

You must be able to get a good rate somewhere on nearly 2 million ?

If you can get much above 1.5% you should become a financial advisor!

 

[malcolms]

In a word, no. There's no VAT on transfers and we would only pay tax on our year end profit. Even then it would be very easy to not pay tax on it.

On average, from memory, clubs in the prem that manage to make a profit end up paying about 2% of their surplus in corporation tax.

You are in cloud cuckoo land....how do you end up paying only 2% on declared profit.?

 

[angelic upstart]

You are in cloud cuckoo land....how do you end up paying only 2% on declared profit.?

You would need to ask the clubs in question. Little binge drunk at present, but a decent accountant can always work wonders. I'll have a looksee tomorrow for a link/back up to my claims. My initial thoughts would be paying off debts to the club owner.

 

[andrew p long]

Well the HMRC take on the matter is shown here
http://www.hmrc.gov.uk/manuals/eimanual/eim64115.htm
(Clear as mud IMHO, although the 5% levy taken by the League is a bit of a stunner?!)

[/url]

this section is saying that *players* normally have to pay income tax on signing on fees received by them

 

[chunkymorrinmunter]

You must be able to get a good rate somewhere on nearly 2 million ?

buy 3 or 4 houses, rent them out.

 

[cannockred]

Happy New Grecian Year!

IF the sum is £1.75m, i would like £750k given to the club, split in 3 for contingencies, players and towards the academy 4g, the million give to the trust in repayment of the loan and for the trust to seek the purchase of SJP by mortgage from the city council and for the balance of the funds needed for the 4g pitch. This will give the trust assets to support the club and obtain loans etc, IF NEEDED.

The trust would rent the ground to ECFC as part of the financial support with the club having a full maintaining lease.

Be nice, but wont (or cant) happen.

UTC

 

[richard_portland]

You won't get decent interest rates even on that sort of money, but you are right they should be getting it in an interest bearing account until any of it is spent. Any money made is better than nothing which often seems to be forgotten when rates are poor.

 

[Saint James]

buy 3 or 4 houses, rent them out.

In theory the best use of the money. However, the reality is that within a short period of time the club would face a cash crisis and need to sell which is difficult with tenants in situ I guess.

 

[Avening Posse]

There are ways of getting more but as always the risks are higher, there are for instance Retail Bonds which pay between 4 & 5% but they in effect are offering the punter the opportunity to give the "borrower" an unsecured loan for the benefit of the interest

 

[motorservices]

Sorry but im lost now, if a Business sells anything then VAT is inc, so if i sell an engine then 20% of that amount is VAT, is 20% of the 1.75 million is indeed VAT then that makes a massive difference, and we will have to pay tax on it at our year end tax bill