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

Do I need an Invoice before I pay a self-employed coach?

April 23rd, 2017

questioniconYou should ensure that you have a contract with the self-employed worker that states that they will only be paid on submission of a detailed invoice and the contract should also state that the self-employed worker will only be paid if the work delivered is to the satisfaction of the client (the organisation paying the worker).

You should also ensure that you are actually given a valid invoice by the worker and not just a timesheet.        So what should a valid invoice consist of?

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Ask Mike - Bookkeeping - Club - Expenses - Latest - Volunteer

Can a Volunteer be Reimbursed for Travel between Home and Club?

April 20th, 2017

questioniconVolunteers 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).

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

How Long Do We Have To Register For VAT?

April 15th, 2017

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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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.

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Ask Mike - Bookkeeping - Club - Latest - Self-Employment

Our Coach Never Substitutes – Is this a Problem?

April 9th, 2017

questioniconWe regularly visit clubs where they are relying on substitution as the way in which their coach is truly self-employed with them, but where the coach has never actually substituted.

It is important to note that a coach who has never actually substituted may not actually pass HMRC scrutiny for self-employment status – HMRC would expect to see evidence that the coach HAS substituted in the past and that subsequent payment to the substitute coach was made by the coach and not the client (club).

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Ask Mike - Club - Latest - Legal

Can Our Club Be Limited By Shares?

March 22nd, 2017

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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Ask Mike - Club - Coach - Latest

Does a Coach have to do a Risk Assessment before Coaching?

March 20th, 2017

It is VERY good practice for a coach to confirm in writing that they have carried out a risk assessment before they start a coaching session.    It is also likely to be a requirement in terms of insurance to prove that ‘reasonable care’ was taken.

If the coach works/volunteers for an organisation, it is the responsibility of the organisation to document what the risk assessment should include and then send this in writing to the coach to action.     The coach will not need to tick each item on the list – it will be sufficient to have a checkbox on the register that the coach ticks to confirm the checks were completed.

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