Stadium work

[pagl]

Originally Posted by Haruki

Staged payments has no effect on the Corporation Tax liability as we recognise the full amount payable from Liverpool in this years accounts so unless we also recognise the expense in this year then we pay Corporation Tax on it. The staged payments is just the difference between cash and I&E
Also in reply to PAGL, the WST would have injected equity into the club and not debt so again paying money to the WST would not effect the Corporation Tax liability. This is why i advocated using the Ward windfall to pay the stadium lease in one big hit

Surely VAT invoices can be raised in line with stage payments.
This happens regularly in the work I do and income often goes over multiple tax years. Dont understand.

Not sure of the difference between equity or liability for the money from WST but this is also in line with stage payments.
Maybe its why it has been all hush hush on this since it went through

[Jaded]

Originally Posted by Wirral Red

As an ex Ruthin resident what is "The Ruthin Mans Attitude?"

Guessing that was a typo referring to the Altitude Suite!

[Dougie Davies]

Originally Posted by Wirral Red

As an ex Ruthin resident what is "The Ruthin Mans Attitude?"

Think it's a dig at Mo$$ or Robber

[Omni]

Originally Posted by Haruki

Staged payments has no effect on the Corporation Tax liability as we recognise the full amount payable from Liverpool in this years accounts so unless we also recognise the expense in this year then we pay Corporation Tax on it. The staged payments is just the difference between cash and I&E
Also in reply to PAGL, the WST would have injected equity into the club and not debt so again paying money to the WST would not effect the Corporation Tax liability. This is why i advocated using the Ward windfall to pay the stadium lease in one big hit

Originally Posted by pagl

Surely VAT invoices can be raised in line with stage payments.
This happens regularly in the work I do and income often goes over multiple tax years. Dont understand.

Not sure of the difference between equity or liability for the money from WST but this is also in line with stage payments.
Maybe its why it has been all hush hush on this since it went through

Haruki is spot on with his analysis.

VAT invoices can be and often are raised in line with work done and paid for in stages, however, that doesn't affect this case.

The one FACT that we know about the Ward cash, is as said previously, it all needs to be brought into account this year. Without wanting to sound rude, this isn't up for debate, this is what has actually happened.

[The Turf]

I’ve had 4/5 lads daily at the butty van. Lots of work on new cctv etc I believe.

[pagl]

Originally Posted by Omni

Haruki is spot on with his analysis.

VAT invoices can be and often are raised in line with work done and paid for in stages, however, that doesn't affect this case.

The one FACT that we know about the Ward cash, is as said previously, it all needs to be brought into account this year. Without wanting to sound rude, this isn't up for debate, this is what has actually happened.

The one fact YOU know, not the rest of us.
So how long is it going to take to receive all these payments?

There must be valid reasons to bring it all in 1 tax year then otherwise we dont benefit. My comments are based in what I have seen happen when payments are drip fed.

[Omni]

Originally Posted by pagl

The one fact YOU know, not the rest of us.
So how long is it going to take to receive all these payments?

There must be valid reasons to bring it all in 1 tax year then otherwise we dont benefit. My comments are based in what I have seen happen when payments are drip fed.

I hope I didn't come across as arsey. I just meant that the one thing I can say for definite is that for corporation tax purposes the whole amount has to be brought into account this year.

I've no idea when or how long it will take to receive the cash though.

There are no benefits to us for doing this, it's just something we have to do to comply with legislation.

[pagl]

Originally Posted by Omni

I hope I didn't come across as arsey. I just meant that the one thing I can say for definite is that for corporation tax purposes the whole amount has to be brought into account this year.

I've no idea when or how long it will take to receive the cash though.

There are no benefits to us for doing this, it's just something we have to do to comply with legislation.

I didnt take it as arsey, obviously you had the facts.
Do we know what the ‘drip’ is?

Is there a different legislation for football clubs that forces them to declare the income all in 1 go?

Looks like spend, spend, spend then

[Omni]

Originally Posted by pagl

I didnt take it as arsey, obviously you had the facts.
Do we know what the ‘drip’ is?

Is there a different legislation for football clubs that forces them to declare the income all in 1 go?

Looks like spend, spend, spend then

No idea what the drip is sorry.

It's not so much different legislation as it's all to do with revenue recognition under accounting principles.

In this case, the amount could be reliably measured whereas in something like the construction business, amounts and events can't always be reliably measured so the amounts brought in can depend on the stage of completion of the project.

Your right though, we need to spend or lose a sizeable chunk to tax.