Wednesday in debt

[TrickyTrev]

After reading the thread title I came into this thread thinking I need to be worried.

 

Now that I've read it, not so much.

 

I think the thread title probably needs a bit of context.

[northeastowl]

3 minutes ago, Hookowl said:

 

Interest on a business mortgage is tax deductable.

 

Makes some sense then.

 

Still if DC is as minted as thought then he could have just paid outright?

 

[Hookowl]

1 minute ago, northeastowl said:

 

Makes some sense then.

 

Still if DC is as minted as thought then he could have just paid outright?

 

 

But he's a business man and also Katrien is a business lawyer.

Looks like she's doing her job right.

[Guest mkowl]

9 minutes ago, Hookowl said:

 

Interest on a business mortgage is tax deductable.

The company has millions of tax losses and makes a whopping loss each year - not sure it needs any more tax deductible items 

[hasthagotanycheese]

Its been taken out to pay Abdi's parking costs at the Northern General. Just park on Herries Rd and walk round like the rest of us Almen.

[Minton]

59 minutes ago, southportdc said:

We need to win one more game to be definitely safe with our impending 10 point admin deduction. 

 

Where has it even been suggested that we are about to enter administration?! 

[Plonk]

3 minutes ago, mkowl said:

The company has millions of tax losses and makes a whopping loss each year - not sure it needs any more tax deductible items 

 

But a smart company will maximise every opportunity to avoid paying tax. Wonder if this is Katiriens work. Been going through the business with a fine tooth comb and making alterations to save money. Would make perfect sense if we are getting towards an embargo?

[@owlstalk]

8 minutes ago, Hookowl said:

 

But he's a business man and also Katrien is a business lawyer.

Looks like she's doing her job right.

 

 

Aye

 

There looks to be zero things to worry about on this occasion to be honest

 

[bradowl]

12 minutes ago, hasthagotanycheese said:

Its been taken out to pay Abdi's parking costs at the Northern General. Just park on Herries Rd and walk round like the rest of us Almen.

He could always order a............. DC Taxi..... They're always coming soon. 

[Guest mkowl]

5 minutes ago, Plonk said:

 

But a smart company will maximise every opportunity to avoid paying tax. Wonder if this is Katiriens work. Been going through the business with a fine tooth comb and making alterations to save money. Would make perfect sense if we are getting towards an embargo?

 

More likely looking at ways to raise cash flow - 

 

So yes within her remit - might as well use someone else's money not her own and pay back gradually

 

Nothing to do with FFP as this expenditure doesn't count for that purpose. Even if it did raising a mortgage against it doesn't change the nature of the expenditure

 

The money received from the mortgage is not turnover either 

[Guest mkowl]

Our own not her own 

[Hookowl]

15 minutes ago, mkowl said:

The company has millions of tax losses and makes a whopping loss each year - not sure it needs any more tax deductible items 

 

It still makes good business sense to claim tax relief on the mortgage interest especially if paying 40% tax rate.

[Guest mkowl]

8 minutes ago, @owlstalk said:

 

 

Aye

 

There looks to be zero things to worry about on this occasion to be honest

 

 

Wouldn't say zero because we are using assets to raise finance 

 

If that finance is being used to fund more development around the stadium or training ground - no issue

 

If it is to raise finance to cover day to day costs then its not the best news ever - 

[Guest mkowl]

1 minute ago, Hookowl said:

 

It still makes good business sense to claim tax relief on the mortgage interest especially if paying 40% tax rate.

 

Why 

 

1) the club has accumulated losses of some ridiculous amount

2) It makes a ridiculous loss each year

3) why pay a £1 of interest to get tax relief on it. Terrible business sense to spend £1 to get 40p back - you are still 60p down 

4) It is a company and would only get 19% tax relief in the very very unlikely situation that SWFC Limited would ever pay corporation tax

[Guest Hillsborough Mole]

What a relief mkowl returned to the thread to bring a modicum of business acumen to it.

 

What a shame there are so few regular posters left that can do that too bring some balance to the bolox that's speculated

[@owlstalk]

 

 

The only speculation I've seen is that Wednesday are in debt?

[robowl4life]

Be reyt  

[steveger]

49 minutes ago, northeastowl said:

Why would we take a mortgage out against the buildings? 

 

DC is supposed to have plenty of cash and this kind of work doesn’t go towards FFP does it? 

 

Seems abit strange.

Old tightarsed Milan used to borrow money all the time... seems a normal thing

[Hookowl]

14 minutes ago, mkowl said:

 

Why 

 

1) the club has accumulated losses of some ridiculous amount

2) It makes a ridiculous loss each year

3) why pay a £1 of interest to get tax relief on it. Terrible business sense to spend £1 to get 40p back - you are still 60p down 

4) It is a company and would only get 19% tax relief in the very very unlikely situation that SWFC Limited would ever pay corporation tax

 

Yes my mind was wandering there, wasn't even thinking limited company.

 

I suppose it depends on what was intended by mortgaging if it is indeed a mortgage on the existing buildings.

Maybe intending upgrading the training ground and facilities ?

[McRightSide]

DC can’t invest any more money due to P&S 

 

Has he just acquires some money he can actually spend, whilst the repayment of the debt doesn’t impact P&S?