true faith : TAXMAN!

by • March 8, 2014 • NewsComments (2)632

As regular readers of this fanzine will know, over the course of this season we have been HMRCpublishing analysis of the Newcastle United business, conducted by supporters with some qualifications, status and considerable experience within business and accountancy.

Whilst it’s true no-one has found a smoking gun of malpractice in the books presented by United, analysis of the accounts has provided us with the confidence to challenge some of the nonsense that has been announced to the media by the club (i.e. Ashley does not take money out of United, the loan is interest free, the advertising given free to Ashley’s companies is a show-case for others, the club is well-run financially etc.).

We are now at the next stage of looking to show the advantages or otherwise to Ashley in terms of non-payment of tax from his other companies as a consequence of Newcastle United well-reported debt (£129m).

We would love an expert in taxation to explain to supporters if and how the £129m United owes to Ashley might have an advantage to other businesses in terms of reducing the tax liability of those companies. Obviously, it would be very interesting to learn what the scale of that avoidance (all perfectly legal of course), might be and in that way demonstrate exactly how ownership of a club, carrying a substantial debt works for Mike Ashley’s bottom line.

If you believe you have the expertise to be able to help enlighten fellow supporters through the pages of true faith, we would really love to hear from you.

If due to professional and / or business considerations you would prefer to remain anonymous that isn’t  a problem for us and we’ll not publish your name alongside any information you provide for us.

If you reading this, know someone you think might have the expertise to help with this work, please pass the link onto them.

Please drop us a line on if you think you can help.

Much appreciated.





Related Posts

2 Responses to true faith : TAXMAN!

  1. Chris Betts says:


    The one thing that jumps out immediately is that interest on debt, reduces a tax liability. This is because ‘interest paid’ on a loan is a reduction on the income statement before the profit which tax is calculated on.

    Therefore, the business ‘Newcastle United’ are missing a trick by not paying interest on it’s loans as it doesn’t benefit from the tax reduction it would create

  2. Chris Nappin says:

    I suppose the argument really centres on what would be of greater value; the interest on the loan or the cost of the advertising? The interest on the loan would be easy to calculate, but the advertising value is a lot more subjective. Assuming they were of equal value, then it would have a net zero effect on the tax on profit if the club started paying interest and receiving advertising fees. If the advertising was of greater value than the interest value, then our profit would increase and the tax would also increase. That’s what should happen haha! Etihad-style. I don’t know how a company can benefit from free advertising legally, surely there’s some kind of procurement law against that, it’s a favour for a mate really and isn’t accounted for. Fuck nahs, is the answer