Ask Mike - Club - Latest - Tax - Volunteer

Can we provide our volunteer coach with free lessons for her children?

April 12th, 2017

questioniconIt is quite common for a club to reward their volunteer coach by providing free lessons for their children in the club programme.

Clubs should note that the tax authorities will consider this to be the same as paying the coach the market value of the lessons for their coaching services.   One club we visited recently was providing free lessons to a coach for her three children with a market value of £3,400 (the amount the coach would have had to pay if she had been a member) as a ‘thank you’ for her volunteer coaching.

In this instance, tax and national insurance may be due on the ‘payment’ to the coach, depending on their personal tax situation and whether they are working elsewhere or not.   This will be the responsibility of the club to declare/administer.

Clubs should therefore ensure that they monitor these types of benefits and they should calculate any tax/NI due to determine the likely impact on the club finances (and potentially on the committee personally) if the club is selected for a tax inspection.

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