Sources: Significant update on HMRC investigation into West Ham
The civil compliance investigation into the tax affairs of West Ham is still ongoing, Football Insider has learned.
A criminal probe which began in 2017 and saw HMRC officers raid offices at the London Stadium has been terminated, although later than was erroneously reported in early May 2021.
Documents seen by this site show that the civil investigation remains active, and Football Insider understands that West Ham do not believe that the matter will be resolved within the current financial year.
HMRC’s lines of enquiry are originally believed to have centred around payments made to agents for the purpose of evading income tax and national insurance.
Although it can be confirmed that the ongoing investigation does relate to intermediary fees, the exact thrust of the civil probe is not known.
A criminal investigation into Newcastle United began around the same time in 2017 but was officially dropped in May 2021.
It was widely reported in October last year that HMRC’s pursuit of football clubs yielded an additional £59m in tax compared to the previous annum.
Civil powers entitle HMRC to apply a maximum penalty of 200 per cent of the tax due, as well as interest on the original amount owed.
Former Hammers boss Manuel Pellegrini was fined £344,000 last year for deliberately defaulting on tax, although the offences took place between 2014 and 2017, before the Chilean entered the dugout at the London Stadium.
In other news, West Ham could now match Newcastle United as £20m deal on the line.