News – Summer 2016
HMRC have recently been sending out de-registration letters to some existing CASCs informing the club it is being de-registered from the CASC scheme now HMRC’s 1st April 2016 deadline has passed.
Our previous newsletters have highlighted that the CASC rules changed as of 1st April 2015. HMRC sent a letter in 2015 to ALL CASCs that registered with HMRC before 1st April 2015. The letter outlined the changes and explained the action each CASC needed to take before 1st April 2016. Some clubs were required to complete and return a CASC self assessment checklist whilst other clubs only had to notify HMRC if they did not meet the new rules so that HMRC could de-register the club.
Now this deadline has passed HMRC have been recently sending notice of de-registration letters to some CASCs as HMRC state they do not meet the new rules. Many other CASCs are also receiving letters notifying them of de-registration from the CASC scheme because they have not returned the CASC self assessment checklist they were sent (to CASCs mainly in the sports of Rugby Union, Football, Lawn Tennis, Cricket and Golf as well as some CASCs in other sports). Clubs are being given 30 days to appeal against HMRC’s decision.
If your CASC has not taken the appropriate action requested by HMRC in the 2015 letter to your CASC regarding the rule changes, it hasn’t received the 2015 letter regarding the rule changes at all or has any concerns regarding being de-registered please contact us immediately.
VAT guidance for CASCs
HMRC have updated their guidance on VAT to clarify that CASCs are not entitled to any special VAT reliefs. Please see here for details.
Government's response to the Gift Aid Small Donations Scheme (GASDS) consultation
The Government's response to the Gift Aid Small Donations Scheme (GASDS) consultation has been announced. CASCs can claim 25p in the £1 on cash donations to a CASC of £20 or less without the need to obtain declarations as is the case when using the Gift Aid scheme. The maximum a CASC can claim in top up payments is £2,000 on total small donations of £8,000 per year. There are currently certain conditions to be made in order for a CASC to benefit from using GASDS, two of which the Government is proposing to be removed. This should make it easier for a CASC to make use of the GASDS scheme. We will provide a future update when these relaxations are made.
Update HMRC with changes to your CASC
CASCs should ensure they keep HMRC updated with any significant changes to the club's details. For example, changes to the club's authorised official must be kept up to date with HMRC.
Making Tax Digital consultation
A consultation has been launched by the Government titled ‘Making Tax Digital’ that may well significantly impact sports clubs. The consultation is asking for views on its proposals to reform the accounting and tax reporting system. The overall consultation is broken down into several sub-consultations. Please see here for further information. You may want to start with this consultation on how HMRC is proposing digital record keeping and regular updates should operate. HMRC would like responses to the consultation. Please contact us if you would like to respond. The consultation closes on 7th November 2016.