Club - Latest - Self-Employment

Paying a Retainer to a Self-Employed Coach

September 28th, 2015

thumbsupiconThe word retainer is often used in sport to describe a fixed fee paid by a club to a self-employed coach/worker for certain services, with the fee usually being paid on an annual basis.

This is not strictly speaking a retainer in the correct meaning of the word – an actual retainer is a fee paid to ‘retain’ the services of a worker, i.e. a payment to ensure that the worker is available to work for the club when required.    It would typically be paid to an experienced coach as an inducement to stay at the club.

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Bookkeeping - Club - Coach - Latest - Tax

How Much is Too Little?

September 24th, 2015

warningiconWe come across a lot of clubs and coaches who assume that they won’t have any problems with the tax authorities (HMRC) because the amounts of money involved are so small, and therefore HMRC just won’t be interested.

There is some truth in this – HMRC will not generally dedicate resources to investigate clubs or coaches if the amounts involved are insignificant but that does not mean they won’t take action if they find out about any issues or discrepancies.

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Ask Mike - Bookkeeping - Club - Coach - Latest

Are All Accountants Qualified?

September 15th, 2015

questioniconIt is not illegal for someone with no accounting qualifications to call themselves an accountant so it is important to ensure that you check how qualified your accountant is before they work on your bookkeeping/accounts.

A recent survey revealed that less than 10% of organisations/individuals actually check the qualifications of their accountant, usually because they wrongly assume that you have to have qualifications to call yourself an accountant.

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Bookkeeping - Club - Latest - Volunteer

Yorkshire LTA Fraud Highlights Need For Self Checking Procedures

July 23rd, 2015

warningiconThe latest in a recent spate of club official frauds in sport has again highlighted the need for clubs and associations to ensure that they have some basic checking in place to protect club funds from fraudsters.

The treasurer of Yorkshire Lawn Tennis Association stole almost £300,000 from them over a period of six years and was this month sentenced to two years imprisonment.     Basic checks and procedures were not in place which enabled the fraud to take place over the six years and the association also made the decision not to report the matter to the authorities when they first realised what was happening in 2012, despite having identified the amount then missing to be over £70,000.

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Ask Mike - Bookkeeping - Club - Coach - Latest - Tax

How Long Do We Have To Register For VAT?

July 18th, 2015

questioniconYou have one calendar month to register for VAT if your ‘vatable’ income from services you have provided for the previous 12 months has exceeded the VAT threshold limit (currently £82,000 as at July 2015).

Your ‘vatable’ income is the income from services you provide that is subject to standard, reduced or zero rated VAT.     You do not include any services that are exempt from VAT or that are outside the scope of VAT in the income calculation.     What income should and shouldn’t be included will depend on your legal status, e.g. a not for profit club’s membership income is exempt from VAT and therefore would not be included in the ‘vatable’ income calculation.

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Club - Latest - Tax

Don’t Assume Your Building Project Will Be VAT Free

July 13th, 2015

warningiconThe recent case of Eynsham Cricket Club has again highlighted the need for clubs to get advice directly from HMRC when considering any form of building project.

The club were wrongly informed by independent experts that their new pavilion would not be subject to VAT because they were registered as a Community Amateur Sports Club and were not for profit.    The club went ahead with the project but were then told last September by HMRC that the building project would be subject to a £34,000 VAT bill, money the club does not have and could now mean that the club is forced to close.

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Ask Mike - Club - Latest

How Do We Prove We Are Not For Profit?

July 9th, 2015

questioniconA not for profit sports club should ensure that has a constitution that clearly states that it is a not for profit organisation and should include a clause similar to the following to confirm that no profit/surplus is distributed to individual members:

The income and property of the Club shall be applied solely towards the promotion of the club and no portion thereof shall be paid or transferred directly or indirectly, overtly or covertly by way of distribution, bonus or otherwise by way of profit to the members of the Club or third parties other than other registered community amateur sports clubs or charities. No member shall be paid a salary, bonus fee or other remuneration for playing for the Club.

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Ask Mike - Club - Latest - Legal

Can Our Club Be Limited By Shares?

July 4th, 2015

questioniconA sports club can indeed choose to incorporate as a limited company by shares but it is not advisable for a club that is not for profit.

A club that is not for profit will need to demonstrate to potential funding organisations and to the tax authorities that any profit/surplus it makes is NOT distributed to the members of the club but is instead reinvested back into the club.    This would be contrary to the structure of a company limited by shares, where the shareholders would normally be paid a dividend based on the financial performance of the company.

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Club - Coach - Latest - Self-Employment

Same Hours Every Week – Self-Employed?

June 22nd, 2015

tipiconWe regularly visit clubs who have decided to employ their coach/groundsman/cleaner because they were told that they cannot be engaged as a self-employed worker if they require the person to work the same hours week in week out.

This is not correct – you can engage a self-employed worker to work for you for the same hours every week, provided that you have ensured that they are registered as self-employed and that you have ensured that you meet the HMRC self-employment guidelines, i.e. you are working with the person in a way that will satisfy one of three scenarios outlined in the guidelines.

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Club - Coach - Latest - Marketing - Social Media

Making Facebook Work For You

June 15th, 2015

resourceiconMany sports clubs and coaches are now on Facebook and have created a Facebook fan page for their members and customers. The system is simple – create your page and invite people to ‘like’ the page so that they then become fans of the page.

Once they are fans, they will then see anything you post on the page on their news feed whenever they log in.     Or that’s how it USED to work…

Facebook has significantly changed the way that fans see content from the pages that they like in the past twelve months.    Now, only an estimated 10 per cent of your fans will see anything that you post and that percentage is likely to reduce further in the future.

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Bookkeeping - Coach - Latest - Self-Employment - Tax

Mortgages for the Self-Employed

June 9th, 2015

peniconThere are many benefits to being a self-employed coach – freedom to work where you want, ability to claim expenses, flexibility in the hours worked – but one issue we get asked about by coaches that causes them problems is getting a mortgage.

If you are an employee, all you will need is two or three payslips and a copy of your contract of employment.    The self-employed will find it harder to get a mortgage and the interest rate charged may be higher than that for an employed person.

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Ask Mike - Coach - Latest

How Easy Is It To Use Video Analysis In My Lessons?

June 5th, 2015

questioniconThe advent of the smart phone has meant that it is really easy for coaches to offer video analysis to their pupils during lessons.

The apps available are incredibly cheap and very easy to use and there is a wealth of help and instruction on the internet for anyone who struggles to get them to work.       Here we list out top three video analysis systems for coaches on a budget.

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Club - Coach - Latest - Legal

Music in Your Club or Coaching Requires a Licence or Three

May 30th, 2015

warningiconDo you play recorded music in your clubhouse or coaching sessions using a radio, CD player, TV or MP3 player?   Can more than one person hear the music?  Then you are legally required to have at least one music licence – failure to do so could result in prosecution.

Playing recorded (or live) music where more than one person can listen to the music legally requires two music licences, one from an organisation called the Performing Rights Society (PRS, representing songwriters and publishers) and one from an organisation called Phonographic Performance Limited (PPL, representing record companies and performers).

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Ask Mike - Club - Latest - Legal - Volunteer

What is an Unincorporated Association?

May 4th, 2015

questioniconAn ‘unincorporated association’ is an organisation set up through an agreement between a group of people who come together for a reason other than to make a profit, e.g. a sports club.      The term is also used to describe the organisation as not being a ‘corporate body’, i.e. the organisation is not a limited company.

The vast majority of sports club are unincorporated associations.      You don’t need to register an unincorporated association with anyone and its rules and regulations are typically detailed in a constitution.

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Bookkeeping - Club - Coach - Latest - Tax

Tax Inspection Insurance – Is It Worth It?

April 25th, 2015

tipiconThere are two potential financial outlays for a club or coach when they are selected for a tax inspection – the possibility of having to pay backdated tax/penalties and the cost of using an accountant to represent the club/coach throughout the investigation.

The first can only be minimised by ensuring all tax affairs are in order.   The cost of the accountant can be minimised through tax inspection insurance and should not be underestimated – a recent investigation for a sports club in the north of England resulted in a bill from their accountants of over £4,000 for representing the club during the seven months the investigation lasted.      The club were offered tax inspection insurance by the accountancy firm but decided that the £165 cost they were quoted was money they could save.

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Ask Mike - Club - Latest - Volunteer

Do I Need Insurance If I Volunteer At My Club?

April 10th, 2015

questioniconSomeone who decides to volunteer at their sports club should NOT have to take out insurance in case they have an accident or cause an accident to a third party whilst volunteering.

We have seen a number of insurance brokers promoting such cover and there is no real evidence that we or Volunteering representative groups have seen that suggests this cover is needed.

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Ask Mike - Club - Coach - Latest - Self-Employment

Does Individual Tuition mean Our Coach is Self-Employed?

April 8th, 2015

questioniconIt is common for a coach at a club to do two specific types of work – coaching for the club where the club pay the coach, and coaching for individual members where the member pays the coach directly.

A coach providing individual tuition directly to members does NOT have any impact on whether a coach is truly self-employed for the work they do for a club where the club pays the coach directly – HMRC (tax authorities) would treat the two types of work as being completely separate.

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Club - Coach - Latest - Marketing

Do You Know Your Retention Rate?

March 30th, 2015

thumbsupiconWe work with numerous clubs and coaches to help them develop an effective marketing plan and there are some basics that everyone should have in place to enable them to effectively monitor whether what they are doing works.

The most important of these is calculating and monitoring your retention rate, a key measure of how good are you are keeping your members/customers.

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