Running a Sports Club Is Like Running a Small Business

With accountants in Brighton, Eastbourne and across East Sussex Plummer Parsons are one of the only UK accountancy firms with a specialist CASC team. Our enthusiastic and dedictaed Sports & Community Amateur Sports Clubs department is ready to ehlp whereever you are in the country. They have put together this blog post to help out if you are running your sports club.

There are many ways to run a sports club, and they all involve costs and rewards. With equipment to buy, membership to manage, operating costs and taxes to consider, it’s no surprise that running a sports club is similar to running a small business or a charity. The short of it: You’ll need to have your accounting ducks in a row.

The Costs of Running a Sports Club

If you’re considering starting a sports club, or you’ve already made the leap and want to spruce up your mechanical game, there are a few main costs to consider - one of them being time. 

Chances are you’re a lover of sports, and the mechanical aspects of operating a sports club just happen to come with the territory. Whatever your expertise, you’ve got to be willing to invest a bit of time into learning the specifics of running a sports club.

Spend some time drafting up your club’s constitution sooner than later. A bit of initial hard work can help you run your sports club more smoothly as it grows and you gain new members and face new obstacles and opportunities. A constitution outlines the rules and objectives of your club, along with how membership and management will function. Expect also to spend time in committee meetings and annual general meetings.

Running a sports club is similar to operating a small business not only because of the time requirements, but also because of the financial costs associated. Depending on how you register your sports club (as a limited company, an unincorporated association, a mutual society, a CASC, etc.), you will find different tax responsibilities and filing requirements. Much like a business, you’ll hire staff to manage various aspects of club operations, and you’ll keep record of cash flow coming in from members and events, and going out for operating expenses. 

Once you determine which structure is right for your sports club, meet with an accountant to be sure that you are then taking advantage of the available benefits and keeping up with the applicable duties. One of the most benefit- and exemption-heavy structures is the Community Amateur Sports Club (CASC) Scheme, which is a bit more like running a non-profit organisation.

The Benefits of Registering as a CASC

In 2002, The Community Amateur Sports Club (CASC) Scheme was introduced, allowing local amateur sports clubs to register with HM Revenue and Customs (HMRC) and benefit from various tax reliefs. To register as a CASC and receive the associated benefits (like the ability to declare Gift Aid), your sports club must be open to the community, organised on an amateur basis, meet the required management and location conditions, have a suitable governing document, and operate for the purpose of providing opportunities for participation in one or more sports.

In 2015, some changes were made to the scheme that make registering your sports club as a CASC an even better idea. Other notable changes added responsibilities for CASCs. These changes include:

 

  • increases in tax exemptions, including exemption from Corporation Tax on:
      • UK trading profits, if the trade’s turnover is less than £50,000 a year (£30,000 a year before 1 April 2015)
      • UK property income, if the total income from the property is less than £30,000 a year (£20,000 a year before 1 April 2015)
      • any interest received
      • any chargeable gains
  • a new income limit condition, which sets an annual £100,000 limit on how much a CASC can earn from non-member trading and property income (e.g. renting out your club’s clubhouse); there is, however, no maximum amount for income generated from members (excluding property income from members)
  • a requirement that 50% or more of a CASC’s members are participating members
  • allowing a CASC to reimburse members for travel and subsistence expenses
  • allowing a CASC to pay players up to £10,000 per year
  • restrictions on the cost of membership

 

Just as in business, there are many details as to what is required of a sports club to be registered one way or another with HMRC. Whether you choose that your sports club is better off as a limited company or a CASC, be sure that you are meeting the financial and legal requirements associated with your official structure.

Comments

Once you determine which structure is right for your sports club, meet with an accountant to be sure that you are then taking advantage of the available benefits and keeping up with the applicable duties. Have a look at Thailand Tours which is the best.