Tax Data Ltd has acted for many different types of clubs and associations over the years ranging from football clubs to investment clubs. It is important to distinguish between the accounting and taxation functions of running a club or association. The members will expect the ruling committee to exercise a high standard of care in accounting for the way their money is spent. I have attended many an AGM where the reading of the Income and Expenditure statement leads on to a lively debate.
What many clubs and associations often don’t realise, is that under current legislation if your organisation generates more than a £1,000 surplus in a year you should make a CT600 report to the HMRC under Corporation Tax rules each year.
Even if your surplus is much less than the £1,000 a year surplus, we still recommend you declare your existence to the HMRC. They will often acknowledge your existence but treat you as a dormant company in their system which requires no filing of annual accounts and tax returns. It is better to declare yourself first rather than be discovered by the HMRC and have to explain your situation under an open HMRC tax evasion enquiry.
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If you are looking for an accountant, we would appreciate the opportunity to show you why Tax Data Ltd would be a good choice. You can either call us on 01737 551904 and have a long chat about your situation over the telephone, or indeed just make an appointment to meet us.
Published 13 September 2017.
Updated 15 October 2017.