1. www.plummer-parsons.co.uk/casc Sports Club Specialists i) CASC & GIFT AID UPDATE ii)INCORPORATION FOR CRICKET CLUBS iii)TAX INVESTIGATIONS Sussex Cricket Board Club Forums 2013 Speakers: Phil Harper – Sports Club Specialist, PP Sports Neville Beckhurst – Partner, PP Sports Sports Club Specialists i) CASC & GIFT AID UPDATE ii)INCORPORATION FOR CRICKET CLUBS iii)TAX INVESTIGATIONS Sussex Cricket Board Club Forums 2013 Speakers: Phil Harper – Sports Club Specialist, PP Sports Neville Beckhurst – Partner, PP Sports

2. www.plummer-parsons.co.uk/casc Setting the level of junior subscriptions to a lower level and asking for the difference to be made as a voluntary donation. Example: Current Junior subscription = £30 per year Revise to £5 subscription and £25 donation (parents still paying same amount) If 100 juniors @ £25 donation = £2,500 total donations, therefore: Gift Aid repayment to club £2,500 x 25% = £625 (per year) WAYS TO MAXIMISE GIFT AID

3. www.plummer-parsons.co.uk/casc WAYS TO MAXIMISE GIFT AID Foregone expenses such as mileage incurred by club volunteers can be claimed and then gifted back to club under Gift Aid. Volunteers would include unpaid coaches, committee members, & other club volunteers. Example: Club with 15 volunteers clocked up 3,000 miles between them over course of a year. 45p per mile is claimed. 3,000 miles @ 45p = £1,350 – if all gift back to club Gift Aid can be claimed of: Gift Aid repayment to club £1,350 x 25% = £338 (per year).

4. www.plummer-parsons.co.uk/casc WAYS TO MAXIMISE GIFT AID Sponsorship of members who raise funds for the club by way of participating in activities such as running in marathons, sponsored swims or other similar fund raising qualify in full for Gift Aid. Offering a taster day to potential new members, providing the club’s facilities and perhaps coaching etc and suggesting a donation to the club for a current fundraising project. Where certain objects being auctioned have a readily ascertainable value, yet the price is in excess of this value, the excess can be treated as a voluntary donation and therefore eligible for Gift Aid. Fundraising events such as dinners, balls, concerts and raffles can set ticket entry to a level which enables the club to break even with a suggested donation, which could be claimed under Gift Aid. Vice Presidents are not required to pay membership subscription but often they will make donation so this should be claimed under Gift Aid.

5. www.plummer-parsons.co.uk/casc CASC LATEST NEWS 4 March 2013 - Government announce new CASC consultation on qualifying conditions for sports clubs to be issued on 28 March 2013. Maximum annual fees, including cost of participation, should be set below £1,040 (£20 per week). Rules & limits on income from social income & non sporting activities will be updated with various possible limits set. If income over proposed limits then clubs may have to set up a wholly owned subsidiary company. Proposals will include generous rules for travel expenses and limited payments to players. Clubs with junior memberships without voting rights will still be able to apply. Final legislation expected in Autumn 2013 after consultation period.

6. www.plummer-parsons.co.uk/casc GIFT AID LATEST NEWS Changes from 6 April 2013 Each charity or CASC will receive annual £5k allowance for small donations whereby no signature will be required for Gift Aid. To qualify:Donations must be under £20 and paid in cash Successful Gift Aid claim in at least 2 of past 4 years New online claim system planned to go live from 22 April 2013. Confirmation of rules in March 2013 budget.

7. www.plummer-parsons.co.uk/casc HOW PLUMMER PARSONS CAN HELP Free advice for clubs to determine savings that can be made. Guide clubs through registration process with our constitution ‘health check’ service if not yet registered. Have unique experience on CASC scheme and have assisted many sports clubs throughout the UK ensuring Gift Aid opportunities are maximised. Review CASC applications that have been rejected by HMRC. As it is important that clubs have necessary documentation to back up the Gift Aid claims we have therefore produced our own designated Maximising Gift Aid pack. Clubs worked with have achieved Gift Aid repayments of between £500 up to £9,000 per year. Ongoing relationship and support for club to ensure it is utilising all the financial opportunities available.

8. www.plummer-parsons.co.uk/casc SHOULD WE INCORPORATE? UNINCORPORATED ORGANISATION: Advantages Simple structure governed by club constitution. Costs are minimal. No filing obligations except to HMRC if trading tax liability is over £100. Treasurer can provide a simple income & expenditure account. Disadvantages If negligence claim made all members are liable if the club were to go bankrupt. Liability is unlimited Some governing bodies now providing extra funding to charities/CICs.

9. www.plummer-parsons.co.uk/casc SHOULD WE INCORPORATE? COMPANIES LIMITED BY GUARANTEE: Advantages: Members are protected from financial risk. Club gains status as a registered company. Club has legal ownership of its registered name. Can in some cases reduce down insurance premiums. No shares or shareholders limiting extra administration. Suitable for CASC status. Disadvantages: Clubs records are kept at Companies House viewed by public. Statutory requirements such as annual returns. More accounting requirements/responsibility of club treasurer. Extra annual professional costs to produce limited company accounts.

10. www.plummer-parsons.co.uk/casc SHOULD WE INCORPORATE? WHAT TO DO TO INCORPORATE: Will need to form a new company with suitable governing articles. CASC clubs should ensure the articles are fully CASC compliant. Once set up a new Ltd company bank account will need to be opened. HMRC clearance letters should be used if necessary for VAT and corporation tax purposes. CASC registered clubs should seek approval from HMRC CASC unit on suitability of new articles first. EGM held to transfer assets of unincorporated organisation to new limited company. For CASC clubs a fresh CASC application will then have to be submitted.

11. www.plummer-parsons.co.uk/casc HMRC TAX INVESTIGATIONS UPDATE HMRC PAYE COMPLIANCE CHECKS: Payment for playing Bar staff Coaches Payments to other staff or volunteers Employed v self-employed New RTI information from April 2013 TRADING INCOME: Any money taken from non members deemed to be a trade Profit should be calculated after deducting related expenses If tax liability (20% of any profits) is over £100 then corporation tax could be due

12. www.plummer-parsons.co.uk/casc HOW PLUMMER PARSONS CAN HELP Free initial meeting to discuss club structure options. Set up of companies for clubs if wanting to incorporate or gain limited liability status. Reduce administration requirements and concerns. PAYE, Tax, VAT and general financial advice. Dedicated sports service committed to ensure annual accounting costs are kept to a minimum for both your club and its members. All fees fixed and charges agreed upfront with club first. All our sports team members have been or are treasurers of local sports clubs.

13. www.plummer-parsons.co.uk/casc CONTACT DETAILS Plummer Parsons Sports Team ‘We share your passion!’ Neville Beckhurst FCA, Partner Phil Harper FMAAT FCCA, CASC Development Manager/Sports Club Specialist Michael Williams, Sports Club Adviser Plummer Parsons 18 Hyde Gardens Eastbourne, East Sussex, BN21 4PT Tel: 01323 431200 www.plummer-parsons.co.uk/casc www.plummer-parsons.co.uk/sports Email: sports@plummer-parsons.co.uksports@plummer-parsons.co.uk Offices also at: 4 Frederick Terrace, Frederick Place, Brighton, Sussex BN1 1AX 5 North Street, Hailsham, E Sussex BN27 1DQ 1 North Street, Alfriston, E Sussex BN26 5UG