News – Winter 2017-18
Post Review Process De-registrations
The number of sports clubs registered as CASCs has decreased to 6,335 as at the end of December 2016. This is a significant reduction from the last analysis at the end of July 2015 as HMRC have de-registered many CASCs as a result of their review process after the CASC rules changed on 1st April 2015 which our previous newsletters have reported on. Please contact us immediately if your club has any concerns about its CASC registration. The good news is that many new CASCs have also been registered during this period, enabling them to receive the benefits of CASC registration, the main benefits being 80% mandatory Business Rate Relief, Gift Aid and certain Corporation Tax exemptions provided they meet the CASC qualification rules on an on-going basis. Registered CASCs have claimed an estimated cumulative minimum cash benefit of £238.3million since the scheme began. (Source: www.cascinfo.co.uk - Monthly analysis of CASC registrations).
Fit and Proper Persons update
HMRC have updated the ‘Fit and Proper Persons’ declaration and helpsheet. In order to be a CASC its Managers (the people who have general control and management over running the club or use of its funds) must be Fit and Proper Persons (FPPs). This would most likely include most members of the management committee. The FPP test is designed to ensure CASCs entitled to tax reliefs are not managed or controlled by individuals who may misuse a CASCs funds. It is advisable for each Manager to sign a FPP declaration.
Making Tax Digital
Further to it’s consultations on Making Tax Digital, the Government are going ahead with plans to reform the accounting and tax reporting system. The initial stage of Making Tax Digital is currently planned to come into force on 1st April 2019 and apply to those businesses that are VAT registered. There is not currently an exemption for CASCs and charities; therefore CASCs and charities with taxable supplies above the £85,000pa VAT registration threshold will have to comply with the VAT Making Tax Digital requirements. Indications are that this will involve requirements to keep records digitally and provide information to HMRC using specialised software. This newsletter will provide further updates when available.
Gift Aid and Gift Aid Small Donations Scheme
The Government is keen to encourage CASCs and charities to make use of Gift Aid and the Gift Aid Small Donations scheme (GASDS). If an individual donates £100 to a CASC, the CASC can claim an extra £25 in Gift Aid from HMRC (subject to conditions). There are plenty of ways your CASC or charity can use Gift Aid and GASDS to generate extra funds. Please be aware that CASCs cannot claim Gift Aid on membership, playing fees and subscriptions. A charity might be able to claim Gift Aid for a small annual subscription that only entitles a member to attend the clubs AGM and vote (subject to conditions) but additional participation or match fees are not eligible. Please let us know how you use Gift Aid at your club or if you have any ways you think Gift Aid could be improved. Please see here for more information or contact us.