Hearts deal with council to pay off rent and rates

By STUART BATHGATE
Published on 30/01/2013 01:12

HEARTS have moved closer to financial stability for the rest of the season by agreeing a repayment deal with the City of Edinburgh council for rent and rates. The Tynecastle club owes the council almost £55,000, composed of just over £18,000 in car park rent and more than £36,000 in business rates.

“A payment plan has been agreed by both parties,” a Hearts spokesperson said yesterday. It is thought that the club has agreed to pay the balance in full over the next five weeks.

Late last year Hearts also reached agreement with Her Majesty’s Revenue & Customs to repay a far larger sum in 
instalments. Hearts disputed HMRC’s claim that it was owed income tax from the salary of players on loan from Kaunas, but the club and the government body were able to settle out of court. Hearts will pay £1.5m in three instalments.

That agreement came after HMRC was granted a winding-up order over separate £450,000 in unpaid tax. Hearts could have gone out of business had they not agreed a settlement.

A council spokesperson said: “We’re committed to collecting outstanding amounts. The council has been in contact with Hearts to resolve this issue.”