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15th Sep 20 5:04 PM
Trickyuk
Posts 27
End of Season Tax
Quick question on the end of season tax.

Are you taxed across the bandings separately or is it just done on total profit?

Profit Bands:

0 to 2,000,000 - 0% tax (no tax is paid on seasonal losses)

2,000,001 to 5,000,000 - 10% tax

5,000,001 to 10,000,000 - 20% tax

10,000,001 and upwards - 40% tax


So as an example, if you make 10,000,000 profit do you get taxed:

£0 for the first 2m
£300k for £2m-£5m (10% of £3m profit)
£1m for £5m-£10m (20% of £5m profit)

Total £1.3m

or

£2m (20% of 10m profit)
 
15th Sep 20 5:18 PM
pleasantsurprise
Posts 4,543
It's in bands Tricky. So the former.
 
16th Sep 20 8:39 PM
BubbaGump
Posts 433
I am going to have 60m profit unless I expand the stadium.. what an absolute shocker I've had here.. I genuinely thought that there would be some decent 80s or 90s FA talent to buy before the season end

What a shocker I've had in management of the finances...

A couple of q's..


1. There's just the one decent player that would be up for negotiations on the final day.. can someone confirm whether a successful negotiation and signing of a player takes effect before the tax is calculated??

2. Does the end of season league monies get added before or after the end of season's tax bill?

Thanks,

Bubba
 
16th Sep 20 11:22 PM
pleasantsurprise
Posts 4,543
Quote:
Originally posted by BubbaGump
I am going to have 60m profit unless I expand the stadium.. what an absolute shocker I've had here.. I genuinely thought that there would be some decent 80s or 90s FA talent to buy before the season end

What a shocker I've had in management of the finances...

A couple of q's..


1. There's just the one decent player that would be up for negotiations on the final day.. can someone confirm whether a successful negotiation and signing of a player takes effect before the tax is calculated??

2. Does the end of season league monies get added before or after the end of season's tax bill?

Thanks,

Bubba


To answer 2. first, yes, end of season monies are added before the season's tax bill is calculated.

Logically, following on from 2, I would assume that if a transfer went through before the final update, then that too would be included in the tax calculation.

Don't forget though, bank movements happen the day after a transfer transaction...
 
17th Sep 20 1:50 PM
BubbaGump
Posts 433
Quote:
Originally posted by pleasantsurprise
To answer 2. first, yes, end of season monies are added before the season's tax bill is calculated.

Logically, following on from 2, I would assume that if a transfer went through before the final update, then that too would be included in the tax calculation.

Don't forget though, bank movements happen the day after a transfer transaction...


I didn't realise the bottom bit re: bank movements happen the day after a transfer. I thought it may happen before the new day starts. Thanks for clarifying this! I basically have zero players of interest that would be signed in time for the money to be deducted before end of season taxes are calculated.

Now I need to work out what the optimum amount of money is to have at the end of every season
 
17th Sep 20 2:10 PM
TopGun2
Posts 285
Quote:
Originally posted by BubbaGump

Now I need to work out what the optimum amount of money is to have at the end of every season


A billion should do it.
 
17th Sep 20 2:24 PM
Piper_FC
Posts 1,037
Quote:
Originally posted by BubbaGump
I didn't realise the bottom bit re: bank movements happen the day after a transfer. I thought it may happen before the new day starts. Thanks for clarifying this! I basically have zero players of interest that would be signed in time for the money to be deducted before end of season taxes are calculated.

Now I need to work out what the optimum amount of money is to have at the end of every season


End of season money is always so tricky to get right. Sometimes it works out perfectly. But most of the time it's down to lots of luck for me.

You may also consider investing the cash in players who might not be long-term for you but have re-sale value. As long as you buy them for less than a 40% inflated fee, you can re-sell them next season and do better financially than you would have by taking the taxes hit. I believe NSSO has done this quite effectively in the past.
 
17th Sep 20 3:01 PM
BubbaGump
Posts 433
Quote:
Originally posted by Piper_FC
End of season money is always so tricky to get right. Sometimes it works out perfectly. But most of the time it's down to lots of luck for me.

You may also consider investing the cash in players who might not be long-term for you but have re-sale value. As long as you buy them for less than a 40% inflated fee, you can re-sell them next season and do better financially than you would have by taking the taxes hit. I believe NSSO has done this quite effectively in the past.


I did consider this but instead I have opted for the stadium expansion route. 8k building is underway and then I have projected that around an 18-20m profit is what I believe is an optimum. I will come in at roughly 24m i think if one of my two players sells before the end of the season. I'm going to try and get a profit of 20m for the next few seasons to build up the finances if I can to take me to the next level. Easier said than done though!
 
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