Manchester United could suffer a major blow to their summer transfer plans as they are in talks with the Inland Revenue over unpaid taxes.
The Red Devils are said to be in talks with HMRC, the British government department responsible for tax collection, according to The i. The discussions would focus on money potentially owed for transactions with players and their representatives, with any discrepancies due to a different interpretation of the current rules.
The negotiations are part of HMRC's increased efforts to recover money from Premier League clubs, with £124.8 million recovered from Premier League clubs last tax year, more than double the amount of the previous year. While this is a good thing for the British government, if it turns out that United are liable for a significant portion of the tax, it will have a huge impact on their transfer plans for the summer. The Red Devils have already been forced into a frugal January due to the need to balance the books.
no transfers because of the Tax Office?
After collecting the sum of 124.8 million pounds sterling, the British tax authorities wrote in a press release: “ We will continue to carefully review agreements between clubs, players and agents to ensure the correct tax is paid. We work closely with the football industry to educate and address tax risk head on. »
This summer will be the first window for minority investor Sir Jim Ratcliffe, who could see his transfer strategy hampered before it even begins. United are already reportedly preparing to sell several players to raise the necessary funds, with the likes of Scott McTominay and Harry Maguire mooted for departure. Ratcliffe could be required to add a few names to the list of players to be eliminated if negotiations are not successful.
