Newcastle United have had to cough up more than £10 million to settle a long-running tax battle with His Majesty’s Revenue and Customs (HMRC), according to the Sun.
The Magpies initially faced a £6.25m bill, but legal fees and costs from the row, with lawyer costs and interest added on, have seen them being forced to part with over £10m.
The long-running battle dates back to Mike Ashley’s ownership of Newcastle, and HMRC – a non-ministerial department of the UK Government responsible for the collection of taxes – added an additional 10 years worth of interest payments on top what they initially owed.
The final cost has been predicted to have tipped over £10m, once HMRC’s compound interest rates are factored in.
Apart from having to fight the tax bill through their players, Newcastle current owners Public Investment Fund (PIF) also secretly paid out millions to stop further interest charges being added.
In 2023, the High Court agreed with HMRC’s demands for Newcastle to pay £4.25m in unpaid national insurance contributions, with another £2m in unpaid VAT payments.
A criminal investigation into agents’ fees and Newcastle was dropped in 2021 after seven years, with officers raiding St James Park and seizing documents and computers back in April 2017.
Newcastle were hit with the demands for unpaid taxes for the period between 2011 and 2017 in January 2018, but the new owners will be pleased to have sorted out everything.
Ashley owned the Magpies from 2007 to 2021, acquiring the club after buying Sir John Hall’s 41.6% stake in May 2007 and increasing it to 77.06% the following month.
The British businessman acquired the remaining 22.94% in July 2007, becoming the sole owner of the club.
Newcastle got relegated twice under his ownership and he finally sold the club in October 2021 for around £305m after several attempts.
