Reading FC: League One club due in court on 9 August over unpaid tax

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Financially troubled Reading are due in court next month for a hearing over their unpaid tax bill.Image source, Getty Images
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Reading were relegated from the Championship last season

League One Reading will appear in court on 9 August over an unpaid tax bill.

The club was served a winding-up petition, which is issued when a debt has been ignored for three weeks, by HMRC in June.

If the club pays-off outstanding debts to HMRC before they are due in court the case could be withdrawn or dismissed.

The financially troubled Royals have already faced charges handed down by the EFL.

Since Reading were relegated from the Championship at the end of last season they have been charged by the English Football League on two counts.

One related to players not being paid on time and in full and the other charge was against the club's owner Dai Yongge for causing the club to be in breach of EFL regulations.

The winding-up petition over unpaid tax came from HMRC at the end of June.

The petition can can be resolved by payment of debt or by arrangement of a payment plan with the creditor, in this case HMRC.

In the worst case scenario, it can lead to a business going into administration.

It is the fourth time Reading have been issued with a winding-up petition, with the club avoiding total collapse on three previous occasions.

The BBC has contacted Reading and their owner Dai Yongge for a comment, but they are yet to respond.

Prior to the club being charged by the EFL, Royals chief executive Dayong Pang posted a letter to fans 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."

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