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19 May 2006
Tax threat warning to junior football
A Government decision to effectively turn Scottish junior football clubs into employers through new tax rules will have a “seriously detrimental effect” on the game, Dundee West MP Jim McGovern has claimed, writes Bruce Robbins.
Mr McGovern is calling on the Government to rethink a ruling branded “simply ridiculous”.

The MP’s concerns centre around new Inland Revenue tax rules that require clubs to pay their taxes through the Pay As You Earn system, ending the exemption they currently enjoy to use a simple “informal return” procedure which is less complicated to deal with.

Under PAYE, the funds have to be dealt with on a monthly basis and fed with the individual player’s tax codes.

Mr McGovern has tabled a Parliamentary Motion at Westminster calling for the Inland Revenue to reconsider and has also written directly to Chancellor Gordon Brown requesting an urgent meeting.

He said, “My motion recognises the need for clubs to pay taxes where appropriate. However, treating junior football clubs as if they are normal employers is simply ridiculous.

“These are not Premier league teams paying players thousands of pounds a week.

“Rather they are small community clubs giving players some funds towards their expenses.

“The new rules will mean an awful lot of administration for the clubs committees.

“The people who run these committees are ordinary members of the community who do this in their spare time.

“My fear is the added work and pressure this will cause will dissuade people from helping out their local teams.”

The motion has already been signed by over half of the Scottish MPs who are eligible to sign it and Mr McGovern believes this shows the strength of feeling about this issue.

He added, “Junior football plays a valuable role in our community and I hope, through this motion, we will be able to find a solution.”