NEWCASTLE United said today that the article in the Guardian newspaper, dated January 24, 2006, suggesting that they have been improperly claiming back VAT in respect of certain transfers is factually incorrect.

The issue between professional clubs and the HM Revenue and Customs concerning VAT on agents fees is not specific to Newcastle but to the industry as a whole.

Newcastle appealed, a process which requires immediate payment of any assessment raised by HMRC. We are seeking to recover this through the Appeal procedure, although we will not be the first case to be heard in England and are definitely not the club to go to the Tribunal on February 1 and 2.

To sum up Newcastle United paid over the VAT in this case over twelve months ago and are now seeking recovery.