Hereford United: Winding-up threat averted as tax bill is paid

Edgar Street

Hereford United appear to have averted a winding-up threat by raising the funds to pay an outstanding tax debt.

The Bulls were due in court in London on Monday to face a petition from Revenue and Customs over the non-payment of a £36,800 PAYE bill.

But the Conference Premier club announced on Friday afternoon that the debt, which relates to October/November PAYE payments, has now been settled.

The Bulls still need to urgently raise more funds and are plan to cut costs.

"The board of directors at Hereford United would like to advise supporters that funds have been secured and underwritten by the board to satisfy the winding-up petition," said a club statement.external-link

"Internally the club will continue to review all lines of cost to ensure there is absolutely no wastage and that moving forward the club inch towards a break-even budget ahead of next season.

"As well as our continued work to reduce costs on a day to day basis, we also need to increase fundraising activates to generate around £10,000 extra per month for the remaining months of the season.

"If we can move our average attendance closer to the 2,000 mark, financially it will help considerably."

The downward spiral of Hereford's financial situation since being relegated from the Football League in May 2012 prompted the board to ask fans for pay extra at the turnstiles in the run-up to and during the Christmas period. And, at last Saturday's home game against Southport, the Bulls received over £2,900 in anonymous donations from fans.

Having already agreed last week to offer fan representation on the board, the club have now asked the Hereford United Independent Supporters Association (HUISA) to oversee the continued fundraising operation.

Hereford do still have a remaining HMRC debt of almost £25,000, which was due at the end of December.

"We will be holding a fans forum shortly to look at all revenue generating ideas in order that we may succeed in our quest to overcome this period and move forward on a sound footing," the club statement added.

"More immediately we have a payroll run to complete, and shortly we will have a further tax bill to satisfy."