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EFL asks Government to allow clubs to defer on tax payments amid ongoing ban on fans

The EFL says clubs are losing a combined £22 million a month playing behind closed doors - PA
The EFL says clubs are losing a combined £22 million a month playing behind closed doors - PA

The English Football League has asked the Government to allow its clubs to defer tens of millions of pounds of tax payments until the ban on crowds attending games is lifted.

A written submission has been sent amid a threatened boycott of the payment in protest at the refusal of ministers to contribute to a bailout of the lower leagues following their decision to scrap the return of fans due to a spike in coronavirus cases.

Approximately half of clubs’ salary bills goes to HM Revenue & Customs (HMRC) in tax and national insurance but the EFL says they are losing a combined £22 million a month playing behind closed doors and is seeking a postponement of the payments.

Teams have already taken advantage of a Government scheme that allowed them to defer around £100m in tax payments while football was suspended between March and June.

News of the request came after a petition calling on the Government to “allow football fans to attend matches at all levels” failed to overturn the ban on crowds at elite sporting events.

The Department for Digital, Culture, Media & Sport promised to review the situation at “the earliest opportunity” in response to the petition, which has attracted almost 200,000 signatures since being lodged with the Parliament website last month.

It was announced last week that the petition would be debated by parliament on November 9.

Ahead of that debate, DCMS said: “We will take the earliest opportunity to look again at getting spectators safely back into stadia but this must clearly be done carefully against the prevailing health conditions.

“Football clubs form the bedrock of our communities and play a vital role in the local economy. Their importance has been clearly demonstrated throughout the pandemic with clubs at all levels providing incredible support to their area.

“That is why the Government is committed to supporting sports clubs up and down the country, with many football clubs benefitting from the Government’s unprecedented financial support to businesses.

“The Government is fully aware of the importance of getting spectators back into stadia for many sports, and the financial consequences of the decision not to allow this from 1 October. The evidence received from the Chief Medical Officer was very clear that at a time of rapidly rising infections, and when the Government was considering restrictions elsewhere, it was not the right time to undertake any further easements.

“We will continue to work closely with a whole range of sports to understand the latest thinking that might allow spectators to return. This includes the creation of a new Sports Technology Innovation Working Group of sporting bodies and health experts to analyse new technologies which might support this. This will supplement the draft government guidance, and the SGSA supplementary guidance to their Green Guide, which has been internationally welcomed.

“We are committed to getting spectators back into stadia as soon as it is safe to do so.”