Do you run a Community Sports Club?
Often running a local sports club such as Tennis, Bowls or Football can be a difficult task. There are so many things to consider and managing subscriptions and handling cash can be daunting.
In 2016 there were 6.335 registered Community Amateur Sports Clubs (CASCs) who have benefitted from over £283 million in tax relief.
Haines Watts currently works with a wide range of village clubs and societies to ensure every opportunity is taken to minimise tax and stay compliant.
If you currently run a club or are thinking of setting one up then please read on to see what you need to consider.
In previous years HMRC have targeted CASCs regarding paying expenses to volunteers along with other queries on PAYE.
It’s important to get it right from the outset so you know what you can do and where to go for help.
Firstly, you will need to find out if you can register to be a Community Amateur Sports Club to benefit from a range of tax reliefs including Gift Aid.
To find out if your club is able to register visit the government website here.
There are a set of criteria that you must meet in order to be able to register, these include:
- be open to the whole community
- be organised on an amateur basis
- have as its main purpose providing facilities for, and promoting participation in, one or more eligible sports
- not exceed the income limit
To find out more about the eligibility criteria read a copy of our fact sheet on CASC here.
When you apply for recognition for your community amateur sports club (CASC), you must choose:
- Up to 2 ‘authorised officials’ within your charity to manage its tax, eg claim Gift Aid and file a tax return
- 2 to 4 ‘responsible persons’ to be legally accountable for running your charity, eg a trustee, director or treasurer
You need to do this before you can qualify for any kind of tax relief.
So what dont you pay tax on as a CASC?
- Bank interest
- Gift Aid Donations
- Capital gains
- Trading Profits
- Income of up to £30,000 a year from renting out property
And you do pay tax on anything else including:
- Tax on income of more than £30,000 for renting a property
- Business rates – you can appeal for relief of up to 80%
- Tax on trading profits if the turnover is more than £50,000 a year.
You must complete a tax return if your CASC needs to pay tax.
To find out more about what you need to do and what your responsibilities are take a look at our Fact sheet for Community Amateur Sports Clubs.
If you need help with the financial responsibilities that go with running a sports club then please get in touch. We can help set you up and advise on tax reliefs available. We can also help Tax Planning , Gift Aid and claiming tax relief.
Finances are only one of the areas in which you have to consider when running a club. As well as helping with tax related queries we can also introduce you to digital accounting software, data management and IT, contactless payment solutions and subscription management programs that will ensure the smooth running of your club from an administration point of view.
Give us a call now on 01379 640555 to find out how we can help you.
Want to know more? Call us on 01379 640555 or email email@example.com