Reading are set to be hit with another transfer embargo after failing to pay HMRC on time, according to national reports.

The Royals were due to pay tax last week but have failed to do so, the third time in the last six months.

This comes as owner Dai Yongge continues to treat the club with contempt.

He personally has been charged with misconduct after failing to submit 125 per cent of the wage bill into an allocated account, which he was asked to do after failing to pay staff on time three times last season.

This is the third time tax has been late since relegation to League One, with the club hit with a temporary embargo until the amount was settled each time.

According to John Percy of the Telegraph, the same is due to happen on this occasion.

As of the time of writing, the club were not listed on the EFL Embargo Reporting service.

If not paid, HMRC can file for a winding-up petition.

This was done in June, but the club paid the outstanding bill before reaching court.

The Telegraph report goes on to suggest that the club could be hit with a third points deduction of the season if wages are not paid on time this month.

They are due to be paid on Friday.