Treasury Committee asks HMRC for answers on Manchester City tax implications

Treasury Committee chair Dame Meg Hillier has asked HM Revenue and Customs to explain its response to findings against Manchester City, seeking answers about potential tax implications as the club challenges its football disciplinary verdict. Parliament published the correspondence on October 1, with HMRC asked to respond by October 15.

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Writing to HMRC permanent secretary and chief executive JP Marks, Hillier asked whether the department knew about the independent commission's findings and had requested or received an unredacted report. She acknowledged that taxpayer confidentiality could limit disclosure, while seeking reassurance that HMRC recognised the importance of the issues and the public interest involved.

The letter highlighted the commission's finding that remuneration payable for services to City had instead been recorded under a consultancy agreement, concealing the extent of the club's liabilities. Hillier also requested an overview of HMRC's work on football clubs, including common issues involving pay and taxation. She said the committee would publish the department's response in due course.

The parliamentary questions follow the Premier League's September 29 announcement that City had been found guilty of serious financial-rule breaches spanning the 2009-10 to 2017-18 seasons. According to the league's published account, the commission found that arrangements with commercial partners inflated revenue and reduced costs, while misstated accounts concealed the club's finances from auditors and football regulators.

City continue to deny wrongdoing. BBC Sport reported on October 2 that the club had lodged an appeal, arguing that the commission's ruling contained errors in law, principle and fact. The club also maintained that evidence supported its position. The challenge means the findings cited in Hillier's letter remain contested by City, rather than accepted by both parties.

The tax questions and the football sanction are separate matters. Hillier's correspondence requests information from HMRC; it does not announce a tax assessment against City. The Premier League said any sporting punishment would be considered at a further hearing before the independent commission, with proceedings remaining private until publication of the outcome is permitted. No sanction was specified in that announcement.