The ghost of Ashley. Newcastle pays £10m tax bill as HMRC cracks down on clubs

September 6 – Newcastle United have had to cough up more than £10 million to settle a long-running battle with British tax authorities according to multiple reports.

The dispute dates back to Mike Ashley’s ownership of Newcastle before the current Saudi-owned consortium took over.

In 2023, the High Court agreed with HMRC’s demands for Newcastle to pay £4.25 million in unpaid national insurance contributions, with another £2 million in unpaid VAT payments.

His Majesty’s Revenue and Customs (HMRC) – a non-ministerial department of the UK Government responsible for the collection of taxes – reportedly added an additional 10 years’ worth of interest payments on top of the £6.25 million initially owed.

National insurance payments on agents’ fees is a major area clubs are suspected of underpaying along with image rights payments.

Last year, Elliott Buss of chartered accountants Hacker Young and a specialist in the taxation of sports clubs was quoted as saying: “HMRC is really cracking down on the football industry to recover what it sees as a significant amount of unpaid tax. Football clubs are a subject of particular concern and HMRC now have these clubs’ tax affairs in their sights.”

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