You've obviously not run one that turned over enough to make it to a Ltd company, as if you had you'd understand that a companies financial year end can be any month. Swansea FC's financial year end is the end of July
If the tax office rang and explained the workings of the system, Dai would argue with them, informing them that he was right and that they didn't know what they were talking about.
He patently doesn't even understand the basics. He's related 'tax reasons' to the financial tax year for individuals. He's failed to comprehend that a massive cash windfall at the death of your current financial year would mean 2 things - firstly it could leave you with a huge profit and thus tax liability in the current financial year, and secondly from an FFP and STCC perspective it'd leave you spending the windfall in the next financial year, which could cause you further issues. Delaying the deal until the 1st makes perfect sense to me.
Dai, here is an extract from the Government's website " Your ‘accounting period’ for Corporation Tax is the time covered by your Company Tax Return. It can’t be longer than 12 months and is normally the same as the financial year covered by your company or association’s annual accounts." https://www.gov.uk/corporation-tax-accounting-period
Prior to my retirement, I had been a Director of umpteen UK Companies (as well as others in Europe & North America). Whilst none of us "know" for certain if there is any truth to the rumour that the deal is being delayed until the start of the new Accounting Period on Tuesday, what is "known" is that such a tactic would make sense from both Fiscal and Cash planning perspectives. What we have now in Swansea is the Club owned and controlled by US Financiers. Having dealt with Financiers/PE firms/Venture Capitalists on both sides of the Pond, I know how focused they are on Cash & Cash Flow - accounting for a profit in the first week of an Accounting Period, as opposed to the last week, would delay the payment of the attendant Corporation Tax by 12 months. The Yanks are invested in the Swans for one (principal) reason - to make money when they exit.......
http://www.walesonline.co.uk/sport/football/transfer-news/swansea-city-manager-paul-clement-13407002 This sounds reassuring. Clement knows what players he wants and should Gylfi leave I think we'll see 2 or 3 players signed very quickly. Seems to me that deals are in place, but everything is on hold until Everton sign Gylfi.
The decision to not play Gylfi suggests that he is being "wrapped in cotton wool" pending his transfer some time after Monday - announcing it on Monday would be ludicrous from a financial perspective. If that is the plan, then I would expect that deals have been agreed already on the recruitment front.
But Valley, there is (potentially) no saving - it is a timing issue as to when the tax falls due for payment.
So much for the Yanks investing in the club! Clearly any deals coming in requires the sale of Siggy, same old way of running the club, these Yanks either don't have the money to invest, or don't want too invest, leaving transfer dealings until the last minute again, handicaps us for the first 10 games of the season, so amateur from our board of directors...................
Our companies tax year is January to December, last year the profits were too much for our group, so we went on a spending spree up dating warehouse Capex that were budgeted for the following year, so we would reduce our corporation tax. Base on the figures we were getting free work done.
Well given last season's debacle, thought I'd give the boardroom chavs some space to prove their worth, but clearly they are well suited to Jinx's gang of thieves................
