New Rules for Community Amateur Sports Clubs
New rules for Community Amateur Sports Clubs (CASCs) will be introduced on 1st April 2015. The CASC scheme was introduced in April 2002 and has enabled many local amateur sports clubs to register with HM Revenue and Customs and benefit from a range of tax reliefs.
Cornwall Sports Partnership is urging all clubs currently registered with the scheme to ensure that they meet the new regulations. If your club is currently registered and meets the new rules then you don't have to do anything. If your club doesn't meet the new rules then you have until 1st April 2016 to make changes to your club to meet them.
As a CASC you won't pay tax on:
• trading profits if your turnover is less than £50,000 a year (£30,000 before 1 April 2015)
• income of up to £30,000 a year from renting out property (£20,000 before 1 April 2015)
There's no longer a limit on the amount of trading income you can earn from members. The new income condition means that CASCs can't earn more than £100,000 a year from:
• trading with non-members
• property income
Payments to players
CASCs can pay players as long as they don't pay more than £10,000 in total to all their players in a single year.
There are new limits on fees and costs associated with membership:
• Fees can't be more than £31 a week (£1,612 a year)
• If your club's membership fees and sporting activity costs are more than £10 a week you must provide help, for example a discount to reduce those costs to £10 a week for people who can't pay more.
Clubs can pay expenses for some matches and tours where players take part in and promote the club's sport.
At least 50 per cent of a club's members must participate in sport at the club.
What you need to do
HM Revenue and Customs (HMRC) has published detailed guidance explaining how the new rules work. It is important that you read this to check whether your club meets the rules.
If you can't meet the new rules
If you can't make changes to meet the rules, you can ask HMRC to take your CASC off the register.
As long as you met the rules before they changed on 1 April you won't:
• be removed from the register until 1 April 2016
• have to pay any charges
Detailed guidance about how the Community Amateur Sports Club (CASC) scheme works and information about reliefs you might be able to benefit from may be found at: https://www.gov.uk/government/publications/community-amateur-sports-clubs-detailed-guidance-notes
The following HMRC documents are attached for your ease of reference:
• Community Amateur Sports Clubs: detailed guidance notes
• Annex 1: overview of Corporation Tax and VAT rules for Community Amateur Sports Clubs
• Annex 2: incorporating an existing CASC into a company
• Annex 3: multi-sports clubs
• Annex 4: seasonal sports
• Annex 5: model clauses