Ipswich Town, currently in administration, are hoping that a new law will help them to reduce the amount of money they have to pay the Inland Revenue and Customs and Excise.

The new Enterprise Act comes into force this April and will mean that the Inland Revenue and Customs and Excise will be downgraded from preferential creditors to unsecured creditors.

Leicester City took advantage of this change when settling their income tax and VAT bills earlier this season, a move which was not universally welcomed. Town's administrator, Nick Dargan from Deloitte and Touche, previously worked with Leicester, as well as Swindon Town and ITV Digital.

Football League spokesperson John Nagle says Leicester's approach to their tax bill has not impressed his organisation: "The League's concern has been to maintain football's reputation in the community and fair competition between clubs, but this settlement by the Inland Revenue seriously undermines that and gives clubs an incentive to go into administration rather than work hard to pay what they owe."

Due to the massive wages clubs pay to players, the sums owed to the tax authorities are usually a high proportion of their debts.

Town chairman David Sheepshanks hopes that the Blues can settle their tax debts along similar lines to the Foxes: "We don't know if Leicester does set a precedent but we will certainly be looking to do a deal with the Inland Revenue."

Over the weekend it also became clear that money owing to former managers does not count as a secured football debt. Therefore George Burley will be treated as an unsecured creditor and is only likely to get a percentage of what he is owed on the remaining three years of his contract.

The Blues had offered a settlement on the contract, however the former manager turned it down.

Meanwhile it is reported that Town have turned down a joke offer of £500 to buy the club.

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