Wednesday given High Court deadline to settle tax bill

SHEFFIELD Wednesday were given 28 days to settle their debts with the taxman yesterday after a High Court registrar was told the club had already made a "substantial payment".

Hugo Groves, representing the club, asked for the adjournment of a winding-up petition by Her Majesty's Revenue and Customs after saying money from the sale of players had been used to reduce the outstanding PAYE balance of 550,000.

"There are also very serious and advanced negotiations for the sale of the club," he told Mr Registrar Peter Nicholls.

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HMRC said there had been "a very substantial payment of the debt" but more money was owed since proceedings began and was granted permission to amend the petition.

The Registrar dismissed petitions against Southend United and Cardiff City after being told the debts to HMRC had been paid.

League One club Wednesday have been dogged by financial problems since being relegated from the top flight in May 2000 with the Owls' current debts reported to be around 26m.

An HMRC spokesman said earlier: "We can't discuss individual cases.

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"HMRC doesn't initiate insolvency action against football clubs – or any other business – lightly but we will not hesitate to do so when that is the right way to protect the country's tax revenues and other creditors from those who trade whilst insolvent and run up debts that they simply cannot pay.

"Ensuring tax is paid on time should be at the centre of football's business strategy just as it should be for any other enterprise.

"Any business that regards paying tax as an optional extra after other expenses are met or that uses tax collected from employees or customers as working capital is potentially heading for trouble." On the pitch, the Owls have made a good start to the season with two wins coupled with a pair of clean sheets.

But Tuesday's 1-0 win over Bury in the first round of the Carling Cup was fortunate after Bury provided the better football.

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It left Wednesday manager Alan Irvine a relieved man at reaching last night's second round draw.

Irvine said: "We were poor. They were the better team, for most of the game. The only time we were the better team was maybe for the first 15 minutes, and at the start of the second half.

"We had a lot of poor individual performances. They didn't play to the levels I have seen from them in pre-season and training. I'm disappointed about that.

"I made two substitutions at half-time; you're wary of making three then, in case you get an injury. If I'd had been able to make more, I would have done.

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"Nicky Weaver played very well. He certainly earned his clean sheet.

"Giles Coke did well when he came on. He scored a terrific goal. The one good thing is that we're in the next round. We have certainly got away with it."