AFC Telford lose court battle over VAT payment

The club released a statement which said HM Revenue & Customs (HMRC) had imposed surcharges of about £2,500 after VAT bills of £40,000 were paid late.

Officials at the club said they had given warnings that payments would be late and therefore should not be penalised.

At a tribunal hearing in Birmingham, a judge ruled against the club.

In a statement, the club said: "As has previously been documented AFC Telford United were subject to an erroneous winding up order brought by HMRC, this was dismissed by the court.

"The winding up order was brought by HMRC in 2015 as the football club was late in paying part of a VAT liability to HMRC, the football club had paid part of the VAT liability on time.

"As some of the liability was paid a few days late HMRC issued penalty notices for late payment.

"The football club appealed against those penalties and eventually this appeal was heard by HMRC Court and Tribunal service.

"Although the court and tribunal service expressed sympathy to the football club it advised that it was tied by the legislation that stated if VAT was paid late and outside a 'time to pay scheme' then the penalties could not be cancelled.

"The amount of the penalties total £2,570.

"The only amount owing by the football club to HMRC are these penalties of £2,570.

"The football club will take advice from its advisors who have stated that there is a case to appeal the Court and Tribunal decision."