Twenty lower league football clubs in the UK have fallen into arrears to the HM Revenue & Customs (HMRC), according to date from chartered accountants and business advisers Lubbock Fine shared with City AM.
The value of Pay as You Earn (PAYE) payroll tax owed by football clubs was £1.04m as of 22 May 2025, which the accounting firm says accounts for 89 per cent of the total £1.17m tax arrears figure.
The firm has explained that increased cost pressures, including the recent hikes in national insurance contributions from Chancellor Rachel Reeves’ Autumn Budget, are pushing more football clubs into arrears.
Lubbock Fine director Graham Caddock says: “Football clubs are struggling to meet their growing tax obligations. Lower league clubs are especially hard hit as far less of the increases in the revenue from broadcast rights trickles down to the lower leagues.
“Many clubs are seeing lower ticket sales due to the cost-of-living crisis.
“One problem is that clubs often prioritise meeting payroll obligations for footballers and other staff before repaying other tax debts.
“This ensures employees have a pay check in the short term, but if unaddressed can result in unmanageable tax debts that can affect the sustainability of the club as a whole.”
HMRC’s winding-up petitions
HMRC has previously issued “winding-up petitions”, which are statements of intent to shut down a business, to several football clubs.
These include National League side Southend United, Taunton Town from the Southern League Premier Division South and National League North’s Chorley Football Club.
Reading FC have also been issued a winding-up petition, which has now been withdrawn.
Caddock added: “HMRC is intensifying its compliance drive and this includes increased use of third party debt collection agencies.
“The best course of action is always to approach HMRC early and explain your club’s financial situation.
“The tax authority is far more likely to be understanding if a football club is proactive and cooperative.
“Disclosing any tax debts when they arise will reduce the likelihood of a winding up petition.”