A number of clubs were penalised by the tax authorities last year for paying volunteers so called expenses because they were deemed to be a payment for services, i.e. the volunteer was in fact a worker.
This will happen if you pay volunteers for more than their actual out-of-pocket expenses and it is something HMRC will scrutinise if they decide to inspect your club or coaching business.
Volunteers CAN be reimbursed for travel between their home and the club they are volunteering at, unlike employees or self-employed workers who cannot claim for travel between home and their ‘principal place of work’.
It is important to ensure that reimbursement is only given when the volunteer completes a claim form and lists the mileage being claimed for by journey, i.e. from postcode, to postcode, reason for travel, number of miles, and the mileage rate agreed.
You do not need petrol receipts for reimbursing such mileage (you only need petrol receipts if the club is VAT registered, in which case, the club may be able to claim some of the VAT paid by the volunteer).
There are two images that you can display on your Facebook page – the cover photo (the large photo displayed at the top and full width of the Facebook page) and the profile picture, the square inset image displayed over the bottom left of the cover photo.
Both photos must be of specific dimensions to display successfully and these dimensions will need to cater for cropping by Facebook. Many people struggle with getting the sizes right, which is why we recommend using CANVA, a free online graphic design software tool that requires very little knowledge to get professional results.
The 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.
You 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.
There 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.
The 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.
Someone 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.
The 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.
We 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.