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 - 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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Club - Latest - News - Tax

Clubs Not Aware of Potential VAT Obligations

March 17th, 2017

warningiconA leading club administrator working for an NGB has expressed concerns that clubs in sport are unaware that they are required to register for VAT if relevant income exceeds the VAT threshold limit.

The administrator, who does not wish to be identified to ensure her sport is not subject to additional scrutiny, told us that she had visited three clubs in recent weeks who should have been registered for VAT because their ‘taxable income’ was over the current VAT threshold limit of £82,000 (as at April 2015).

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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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Did You Know? - Tax

Did You Know… Non-Member Income is Taxable?

February 3rd, 2017

questioniconThe income generated by a not for profit sports club from its own members is not taxable. This is known as “mutual trading”, as in effect the members are trading with themselves.

It should therefore be noted that non-member income is taxable income. Non-member income is defined as income generated from non-members of the club (through competitions, social events, sponsorship etc.) Please note that, for tax purposes, a non-member is someone who does not have the right to vote at the club’s AGM and is not a junior member of the club.

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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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