ECJ ruling could see HMRC make £115m payment to golf clubs

ECJ ruling could see HMRC make £115m payment to golf clubs

First-tier tribunal rules against HMRC in VAT dispute

HMRC COULD PAY  an estimated £115m in VAT to golf clubs after the European Court of Justice ruled against it in an ongoing dispute with West Dorset Golf Club.

The EU ruling has declared that VAT exemptions should include charges made to visiting players, meaning possible big pay-outs for golf clubs across the country.

Since the 1990s, the charge for playing sport at not-for-profit clubs has been exempt from VAT, but HMRC restricted these exemptions to club members, for which it was eventually taken to court.

The tax-man is now to study the accounts of golf clubs to ascertain whether they bore the costs of the VAT themselves, with pay-outs made on the basis that a clubs’ green fees have been inclusive of VAT, which will be the case for most clubs.

With an upper-tier tribunal hearing likely to take place, the windfall is still to be confirmed. Should that ruling follow the first-tier tribunal’s decision, VAT dating back four years can be reimbursed to affected clubs.

Andy Dawburn, VAT partner at Wilkins Kennedy, said: “This is a real breakthrough for golf clubs which can now begin claiming back what’s rightfully theirs. Claimants will be able to back track their claim to March 31st 2009, which could mean a substantial cash injection for some clubs that may have struggled during the downturn.”

The ruling does not apply to proprietary golf clubs, many of which have complained about the decision being unfair as it enables private clubs to possible offer cheaper membership, undercutting the prices offered by proprietary golf clubs who’s members and non-members must pay VAT.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource