kokafalasi Posted January 18, 2020 Share Posted January 18, 2020 So I'm managing Brabrand, finishing my 8th season. Started from Denmark's 3rd tier and am currently a top-2 team, behind FC Copenhagen, regularly in Europe etc. My question is: during this 8th season, tax expenses have gone way up and I've got no idea why. All of last season I paid 2.2M in tax, whereas this season it's already up to 8.4M (and still 2 months left). In the breakdown I can see something called 'Corporation tax' gone way up, from 213k last season to 5.5M this one!?! So I'm wondering what does this have to do with and how can it go up 2500% up within one season? My wages have gone from 36k p/w to 140k p/w but I don't think this would have anything to do with 'Corporation tax'? Here's the screenshot of current finances, any help/explanation would be great: Link to post Share on other sites More sharing options...
santy001 Posted January 18, 2020 Share Posted January 18, 2020 Have you made money? Looking at the increase in expenditure, it does suggest you've had quite a bit of money coming in. Corporation tax is based on the money the club is making, NI Employer would effectively be the tax tied to your wage bill. Link to post Share on other sites More sharing options...
kokafalasi Posted January 18, 2020 Author Share Posted January 18, 2020 I made a lot of money from CL last season but at the end of last season I got hit with a tax bill of several million. Over the course of this season I haven't made that much so this increase seems quite off..?? Link to post Share on other sites More sharing options...
kokafalasi Posted January 18, 2020 Author Share Posted January 18, 2020 FWIW, here's the income part of the finances: made 20M total this season vs 45M last season. Link to post Share on other sites More sharing options...
santy001 Posted January 18, 2020 Share Posted January 18, 2020 So with how it works, you made the money last season and you pay the tax on it this season. The news articles telling you about tax bills or such typically refer to what it will be over the coming year. Personally I don't know if FM has it set country by country, or just uses a flat rate, but for Denmark the rate is 22%. So paying £213,000 corporation tax on £45m revenues would never have been right. However, 22% of £25m (which it seems your profits were) is around £5.5m. It's the nature of how tax works, some tax like the NI contributions will be tied to what you're actually spending right now on wages. Whereas the corporation tax will lag behind to the following season. 2 Link to post Share on other sites More sharing options...
kokafalasi Posted January 18, 2020 Author Share Posted January 18, 2020 That actually makes sense. So the tax bill I got at the end of the season is being throughout this one (or at least partially) and to make a long story short, I need to get back to the CL group stage fast! Thanks for the response. 2 Link to post Share on other sites More sharing options...
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