Hearts fears eased as tax bill is paid off

Published on Tuesday 4 December 2012 02:37

Hearts have settled the outstanding balance on the £450,000 tax bill that threatened to sound the death knell of the club last month.

However, the Tynecastle club have been told it will be next year before they learn if they have been successful in their fight to avoid paying around £1.75 million to Her Majesty’s Revenue and Customs in a separate case.

Hearts officials confirmed yesterday that at least one dispute with HMRC had been resolved after the second instalment over the £450,000 was paid before yesterday’s deadline.

The gravity of Hearts’ financial vulnerability became clear on 7 November when the club released a statement warning that the 138-year-old institution could fold within days unless cash was raised to fend off a winding-up order over the unpaid charge.

Helped by players and members of the backroom staff who agreed to defer November’s wages and the frenzied fund-raising efforts of supporters who heeded the club’s call to arms, Hearts reached an agreement to settle the outstanding debt over two payments, the last of which was due yesterday.

Hearts, who have so far raised £700,000 through a share issue, have cleared the first hurdle in their dispute with HMRC but now must wait to discover which way the £1.75 million case goes. That figure relates to tax liabilities claimed by HMRC over players that were loaned to the club from FBK Kaunas.

Hearts said they would “robustly defend those claims” at a tribunal. But HMRC officials have indicated that it will be 2013 before any decision is made.

Meanwhile, Hearts Youth Development Committee has praised the fans and the club over their fund-raising efforts, which has led to HYDC being handed shares.

Coaches and backroom staff donated shares to HYDC, while fans have raised in excess of £50,000.

A statement read: “HYDC are very aware and grateful that many supporters, groups and Hearts FC have been raising monies to purchase shares and then donating them to HYDC to look after on their behalf.

“Until the share issue closes on 19 December we are unable to thank all the people who 
entrusted us with the responsibility of looking after these shares.

“Suffice to say that this is a responsibility that we will take very seriously and will always act in a way that is best for the future of Heart of Midlothian Football Club.

“The response from supporters has been tremendous but HYDC would ask supporters to keep supporting the club in any way they can whether it be by attending matches, buying Hearts merchandise or supporting the share issue.”

Taken from the Scotsman