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HMRC lodges winding-up petition against Reading who name new manager as players jump ship

HMRC lodges a winding-up petition against Reading, who have this week taken to name new manager Ruben Selles as players jump ship.

The ongoing crisis at the League One club has deepened having been served a winding-up petition by His Majesty’s Revenue & Customs over unpaid tax bills.

As previously reported, the club have a number of charges handed top them by the EFL, and last week the EFL added ‘failing to pay taxes’ to the growing list of regulations the club has failed to comply with.

Along with that, Reading have been charged with failure to pay players on time last season and could face being handed a points deduction similar to Wigan Athletic.

The club’s owner Dai Yongge was also charged with causing the club to be in breach of EFL regulation and has until Thursday the 29th of June to respond to the charge.

As per BBC Sport, a winding-up petition is issued when a debt has been ignored for three weeks, with the only way to resolve it is by paying off the debt or by arrangement of a payment plan with the creditor, for Reading it’s HMRC.

“If a club fails to pay PAYE it’s a red flag,” football finance expert Kieran Maguire said to BBC South Today this week.

“The club has effectively kept the money back for itself, presumably to pay some other debts, and not pay the tax authorities.”

Now a number of supporter groups, who have come together as ‘Sell Before We Dai’, are urging for owner Dai, who bought Reading in 2017, to sell as soon as possible.

Maguire went on to explain just how serious this matter is, saying: “It’s a pretty grim charge sheet and it is indictive of financial stress at the club.

“When Reading are trying to recruit players over the summer those players will ask themselves ‘do I want to go somewhere which has been late paying its employees?’.

“If an organisation is late paying taxes and carries on then HMRC has a legal obligation to take things further and we could potentially see a winding-up petition and things get messy.

“If there is no change of ownership then administration has to be seen as a risk.”

Just hours before Reading were charged by the EFL, Royals chief executive Dayong Pang issued a letter to the fabase where he said he was “confident” the club would “fully correct the mistakes that were made many years ago”.

He added: “As a club, financially we continue to face a number of significant challenges and our owner, Mr Dai, is working very hard to resolve those issues to ensure the future of Reading Football Club is stable, successful, progressive and positive.”

This is the fourth time Reading have been served with a winding-up petition, having avoided the worse of outcomes the three times before.

Meanwhile, Reading say they are pleased to announce that Ruben Selles is set to sign a contract and become first team manager of the Royals – subject to the club’s successful application for a work visa for the lauded Spanish coach.

The application was submitted at the end of last week and we now await a decision on his work visa before he is able to get to work on revitalising this Royals squad and recruiting players to be part of the rebuild at Reading.

Watford have also signed Reading forward Tom Ince for an undisclosed fee on a two-year contract.

But The Tilehurst End claim ‘recent reports suggested Ince had a paltry £50,000 release clause.’

He becomes the third in-contract player to leave the Royals this summer, with the likes of Naby Sarr and George Puscas also leaving.

Departing on frees, include Shane Long, Luke Southwood, Yakou Meite and Lucas Joao. Talks are ongoing with Junior Hoilett and Amadou Mbengue.

Fans react as HMRC lodges a winding-up petition against Reading who name new manager Ruben Selles as players jump ship…

@TheValiants1876: Everyone who has more than a £5 in the bank is staying up at this rate 🙃😂 #PVFC

@M_Hols83: Words fail

@TaylorStannett3: Why are these protests not happening yet, by the time it’s done, it’ll be too late. We need to hurry up 👏#ReadingFC

@AlexDay1308: We are screwed. No depth and only about 10 players used to playing 1st football consistently. Somehow I can see this season being worst than last season

@DexMexOnly: Are we going to be able to field 11 players at this rate. Better get signing ASAP

@JennyLovegrove6: What does it matter, RFC has no future, more embargoes from EFL, HMRC probably winding the club up!! 13 official first team players, total mismanagement of the clubs finances, possibility of members losing their money for their season tickets!!! Our beloved club is on it’s knees!

@dancemusic70: That club seems to have been sleepwalking into this for several seasons. As usual it’s the fans that suffer 😡

@NorthDevonRoyal: Hope the fee is enough to pay HMRC at the very least, #SellBeforeWeDai

@MattWAFCDW: Really hope Reading get through this, terrible thing to go through for any club

@JamesEast16: The start of another depressing week for all fans and staff at the club. It might soon really all be over 😢😢😢 #readingfc #SellBeforeWeDai

@warleybaggie: Quite appalling, my best wishes to the Reading fans.

@LukerDavid1970: Just when you think the situation couldn’t get worse…. Desperate times. And still we’re in silence #readingfc

@SeanMobsby: What’s most egregious is this looks to be just 1/3 under Dai’s tenure, each one buried by the club. Absolutely sickening, can hardly focus on anything else right now without checking what disaster has next happened. Will be very fortunate to have a club at all this time next year

@robertkilcoyne3: Dai Yongge has been responsible for the demise of two football clubs and he was barred by the Premier League from buying Hull City. So how was he allowed to buy Reading FC by the @EFL? Parliament must pass the Bill to create an independent regulator for football ASAP @FairGameUK

@bw_jester_rfc: I’m beginning to think we might do a Bury at this rate and get thrown out the EFL. As it stands, we don’t have a recognised squad, no manager, and the finances might not even be there to run #readingfc through the season. This could be a disaster. #SellBeforeWeDai #DaiOut

@Ryan1871_: How is Dai Yongge allowed near a football club? Already killed 2 now about to be 3. Devastating news 💔 #readingfc

@helencentra: Hope they can get it sorted. It’s so painful watching any other club go through this

@joeflan91: There’s so much money in football at the minute but the spread is so uneven. Best of luck Reading.

@biggianthead24: Obviously don’t want Reading to go bust but I do think it will take a club this size going to wake English football up after Bury etc.

@fm1871: when are these protests happening? #readingfc #SellBeforeWeDai

@proco007: Hope they pull through. It’s awful going through this.

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