Q & A – Qualifying Conditions
The following Q & A's are directional and HMRC detailed guidance on the qualifying conditions should be read, a link to which can be found on this page.
Are there any limits on the sporting costs our members incur if we are to qualify as a CASC?
Membership fees cannot exceed £1,612 per annum. If they are lower than this then the costs associated with membership (including membership and participation fees) must be £520 per annum or less otherwise special provision must be made for those who cannot afford it.
Is there a limit on the number of non-participating members a CASC can have?
Yes - more than 50% of members must participate fully in the sport. If a club has lots of parents and families as members that do not participate regularly in the clubs sporting activities your club may not satisfy the 50% participating members test.
In order to qualify as a CASC is there a limit on the amount of income the club can earn from trading and property?
Yes - if the gross receipts from trading and property income combined exceed £100,000 per year, a CASC will have to set up a trading a trading subsidiary.
We are successful in raising lots of money from outside the club membership - does this cause any issues for us?
Yes - firstly, you may have to pay corporation tax on the profits and secondly, if the total receipts exceed £100,000 per annum, your club may have to set up a trading subsidiary to remain a CASC.
Can the members benefit financially from the CASC?
No - any profits must be reinvested into the CASC and members cannot financially benefit from the club. The dissolution clause in a CASCs constitution must state that on winding up of the CASC any surplus profits must be reinvested into another CASC, charity or a National Governing Body of Sport.
What records does a CASC need to keep?
In order to provide evidence your CASC is complying with the qualifying conditions it needs to keep records of what is actually happening at the club. These include records such as income for the income test as well as income and expenditure for corporation tax, details of participation for the 50% social members test and the calculation of the member cost of participation.
Who can run our CASC?
A CASC must be managed by fit and proper persons.
Can we pay members what we like for playing and in expenses?
No - the CASC rules state there is a cap of £10,000 per annum for the former and rules on permissible expenses which may be different to normal tax rules.