An undisclosed unpaid tax bill has been settled after the club were threatened with a second winding-up order in a matter of months. Newcastle Rugby Limited faced the winding-up petition issued by HMRC but it was dismissed after the club’s owner paid the outstanding tax bill in full.
Rugby Club Escape Winding up
The Falcons latest battle with HMRC comes a few months after another winding up petition was issued against the English Premiership team. Statements published on Companies House earlier this month show the club made a £2,242,721 loss in the year ending June 2015.
Reportedly, Newcastle Rugby Limited had increased its turnover by 24% to £7,604,604 in the same year, however this was not enough to turn a profit. Semore Kurdi, named as the controlling party of the club, bought roughly a 40% stake in the club in 2010 for a reported £2,000,000 which eased the team’s financial difficulties. Despite this, the club’s wage bill has increased to £6,278,338 distributed to 77 members of coaching and playing staff.
Registrar Stephen Baister dismissed the petition on Monday after being informed by HMRC’s Caroline Addy that the debt had been paid. The amount owed to the taxman has not been disclosed in either petition in recent months.
Newcastle Falcons have made steady losses in recent years. However, the registered £2.23m loss in 2015 is an improvement on the last few years after the club made a pre-tax loss of £3.88m in 2014, up from £3.36m in 2013.
Winding-up Petition Solicitors
If you have received a winding up petition our legal experts are able to provide legal advice and representation. Our team of solicitors and barristers can obtain a court adjournment; CVA’s or successfully challenge the validity of the winding up petition to ensure that the petition is dismissed, often without public advertisement.