English Football League: Government asked to defer tax payments at clubs

By Simon StoneBBC Sport
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The EFL requested a £250m 'bailout' from the Premier League

The English Football League has asked the government to allow its clubs to defer millions of pounds in tax payments as it tries to resolve the £250m funding issue that has sparked fears some may go bust.

The government says EFL clubs owe £77.6m in unpaid taxes excluding VAT - £59.1m in the Championship, £13.6m in League One and £4.8m in League Two.

The EFL turned down a £50m bailout offer from the Premier League for clubs in League One and Two because there was no contingency for Championship clubs.

It has left EFL executives looking for alternative sources of funding amid a struggle to pay bills in the continued absence of fans from stadiums.

Although dialogue between the EFL and Premier League is ongoing, chairman Rick Parry recognises the urgency of the situation.

He has authorised a submission to be sent to the government regarding PAYE (pay as you earn) and National Insurance payments from November onwards.

Many League One and Two clubs used the furlough scheme to pay its players during lockdown.

Former Digital, Culture, Media and Sport Committee chair Damian Collins MP, who wastold how much tax the club's owed in a written parliamentary question on Fridayexternal-link, said: "This is a good insight into the weak position of clubs and the need for a bailout.

"If there is no bailout then the government would lose considerable tax revenues. This should provide an additional incentive for ministers to get involved with creating a plan to save community football clubs."

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