News – Spring 2016
Rule change deadline has passed
HMRC's 1st April 2016 deadline for complying with the new rules for CASCs registered before 1st April 2015 has now passed.
HMRC sent a letter in 2015 to ALL CASCs registered with HMRC before 1st April 2015. The letter outlined the changes and explained the action each CASC needed to take. Not all CASCs received the same letter.
HMRC sent out a letter containing a CASC self assessment checklist to around half of the 6,700+ CASCs registered with HMRC before 1st April 2015, mainly in the sports of Rugby Union, Football, Lawn Tennis, Cricket and Golf (as well as some CASCs in other sports). A number of these CASCs who have been sent a checklist have not returned it to HMRC and face de-registration.
To all other CASCs who did not receive a CASC self assessment checklist, HMRC sent a letter requesting that the club respond to HMRC before 1st April 2016 only if they could not meet the new CASC rules so that HMRC could de-register the club. Should one of these CASCs now find that it does not and cannot comply with the new CASC rules, it faces being de-registered by HMRC.
If you haven't taken the appropriate action requested by HMRC in the letter to your CASC or haven’t received the letter please contact us immediately.
Trading Subsidiaries and Supporters Clubs
Some clubs have been re-structuring using trading subsidiaries for their taxable trading operations to meet the new £100,000pa income rule for CASCs. Others which have high levels of family, parent or social members that can’t make changes to satisfy the new 50% participating members rule, have been setting up supporters clubs. HMRC accept the use of trading subsidiaries and supporters clubs but great care is needed with setting up both.
New CASC application form
The CASC application form CASC (A1) has been recently revised and it is now possible to submit an application to HMRC online as well as in paper form. Clubs should take great care to be sure that they meet the new rules before completing their application. Please see here for a link to the new application forms.
No special VAT reliefs for CASCs
A reminder that CASCs enjoy no special Vat reliefs. HMRC do not accept that CASCs can claim that the construction of a new clubhouse qualifies for the zero rate of Vat. Such relief is now only available to charities not CASC's and then in restricted circumstances. HMRC will be updating their guidance for CASC's to make this clear.
Gift Aid Small Donations Scheme consultation
The Government has published its consultation document on the Gift Aid Small Donations Scheme (GASDS). The aim of the consultation is to improve the scheme so that more CASCs and charities make use of it. Currently, if a CASC is regularly claiming Gift Aid, the GASDS scheme allows it to claim 25p in the £1 on small cash donations up to £20 subject to conditions without the need to obtain Gift Aid declarations. The consultation document can be found here and the Government would like responses. Please contact us if you would like to contribute. The consultation closes on 1st July 2016.