Unwary sports clubs face millennium VAT pitfall

Unwary sports clubs face millennium VAT pitfall

Local sports clubs around the UK could find they have suddenly become liable for VAT payments this week, ACCA has warned.

New rules, which came into action on January 1, have been issued by Customs & Excise which may oblige unwary sports club organisers to charge and pay VAT.

The aim is to distinguish sports clubs which are run for commercial gain from those which are organised by members for their own entertainment. But mutual clubs could be included inside the remit of the new rules, alongside profit-led ventures, if organisers do not act now to meet the new Customs & Excise guidance.

Chas Roy-Chowdhury, secretary to ACCA’s taxation committee, warned:’The new rules are designed to bring clubs which are run for commercial purposes within the scope of VAT. Customs has laid out specific exemptions so that mutual clubs can escape the provisions of being taxed. However, mutual club organisers will need to understand the changes. If they do not, VAT will be levied on member subscriptions or on services provided by the club.’

He said that clubs will need to ensure their constitutions specifically state that they are non-profit making establishments and that any profits realised can only be distributed on dissolution.

Sporting move by taxman gives British athletics half-million pound head start for Olympics

Share

Resources & Whitepapers

The importance of UX in accounts payable: Often overlooked, always essential
AP

The importance of UX in accounts payable: Often overlooked, always essentia...

1y Kloo

The importance of UX in accounts payable: Often ov...

Embracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...

View article
The power of customisation in accounting systems
Accounting Software

The power of customisation in accounting systems

1y Kloo

The power of customisation in accounting systems

Organisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...

View article
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

4y Accountancy Age

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
8 Key metrics to measure to optimise accounts payable efficiency
AP

8 Key metrics to measure to optimise accounts payable efficiency

1y Kloo

8 Key metrics to measure to optimise accounts paya...

Discover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...

View article