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Hereford United FC Face Second HMRC Winding Up Petition

April 07 2014

Embattled football club Hereford United is facing a second winding-up order in three months.

First HMRC Winding-up Petition

Earlier this year the Bulls were served with a winding up petition which was brought by HMRC, over an unpaid £36,800 PAYE bill. We reported on this in January 2014 and on the subsequent dismissal of the petition:

The winding up petition served by HM Revenue and Customs (“HMRC”) against Hereford United F.C was dismissed by Registrar Barber at the Companies Court, Royal Court of Justice on 27 January 2014.  The dismissal of the petition came after the board of directors secured funds to pay off the club’s outstanding tax bill of £36,500 to HMRC. As a result, the club has managed to avoid a winding up order.

Second HMRC Winding-up Petition

HMRC issued a second petition against the Conference Premier club in late March over an unpaid £78,000 tax demand. The club will hear the petition at the High Court of Justice on 7 April. Insolvency News reports that the club’s latest annual accounts show a loss of £498,994 for the year ending 31 May 2013 – the worst financial result in Hereford United’s 90-year history. Turnover fell year-on-year to £1,629,982 in 2013 from £1,873,696 the year previously, while totals owed to creditors falling due within one year rose to £640,608 from £568,448 in 2012.

Consequences of the Bulls Winding Up Petition

Since relegation from the Football League in May 2012, Hereford United has seen revenues and attendances at games fall, and club chairman David Keyte has revealed it would take £300,000 to see out the current Conference Premier season. A statement posted yesterday (31 March) on the club’s website said £20,000 has been raised through various donations and fund-raising schemes, as well as match day income, towards the unpaid tax bill.

Hereford United currently sits one point above the relegation zone in the Conference Premier Table, with just six games of the season left to play.

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