Bookkeeping - Club - Latest - Self-Employment - Tax

Are Your Self-Employed Coaches TRULY Self-Employed?

May 2nd, 2017

thumbsupiconThis is the time of year that most clubs start to plan their summer programme of coaching and club activities and it is therefore a perfect time to ensure that any self-employed coaches you use in delivering your programme are truly self-employed, i.e. they would pass scrutiny by HMRC (tax authorities) should they decide to investigate your club.

It is important to understand that a club cannot just declare that they are in a self-employment relationship with a coach.   A club would have to prove to the tax authorities that the manner in which they work with the coach is genuinely a self-employment relationship, and not one of disguised employment, i.e. the manner in which the club works with the coach is actually one of employment/worker.

If HMRC find that the manner in which a club is working with a self-employed coach is actually one of disguised employment, they will declare the relationship to be one of employment/worker and pursue the club for owed employers national insurance contributions, interest and penalties, dating from when the coach started at the club.

There are three ways that a club can work with a self-employed coach to ensure they would pass inspection by HMRC.    Each will require a contract of services to be in place between the club and the coach outlining the actual working arrangements.

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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 - 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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Bookkeeping - Coach - Latest - Self-Employment - Tax

Mortgages for the Self-Employed

March 9th, 2017

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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Bookkeeping - Club - Latest

Are Your Club Committee Members Signing Blank Cheques?

February 4th, 2017

It’s a common scenario – a committee member doesn’t know how much something is going to cost and asks fellow signatories on the club’s bank account to sign a blank cheque, and the committee member will fill the amount and payee in at a later date.   It seems harmless enough but we advise all club committee members to refuse such requests to ensure they are not held to be negligible if a fraud subsequently takes place.

The practice was highlighted recently when the former treasurer of a rugby club in Cornwall was jailed for 21 months for defrauding the club of more than £76,000.   The court heard that the treasurer’s fellow committee members wrote blank cheques for him to use and gave him full and sole control over the bank’s internet banking account.     The club was almost forced to close and is now actively fundraising to replace the stolen money.

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Bookkeeping - Club - Coach - Latest - News - Tax

VAT Registered Clubs and Coaches – Are You a Limited Cost Trader?

February 2nd, 2017

Some VAT registered clubs and coaches who are on the Flat Rate scheme may see the amount of VAT they pay increase to 16.5% of their turnover when government changes to the flat rate scheme are imposed from 1st April 2017.

The changes were announced in the Government’s Autumn Statement and were introduced to counter ‘misuse’ of the scheme, whereby businesses were incorrectly using the wrong flat rate category.

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Bookkeeping - Club - Coach - Latest - Tax

Tax Inspection Insurance – Is It Worth It?

January 22nd, 2017

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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