CASC – Do you still qualify?

HMRC has just released its guidance on the upcoming changes to the Community Amateur Sports Club (CASC) Scheme. The changes came into effect from 1 April 2015.

The Community Amateur Sports Club (CASC) Scheme was introduced in April 2002. It allows local amateur sports clubs to register with HM Revenue and Customs (HMRC) and benefit from a range of tax reliefs, including Gift Aid.

As of 1 April 2015 a number of changes will be made to the CASC scheme, there will also be an increase in the tax exemptions for property and trading income.

The changes:

As a CASC you won’t pay tax on:

• trading profits if your turnover is less than £50,000 a year (£30,000 before 1 April 2015)
• income of up to £30,000 a year from renting out property (£20,000 before 1 April 2015)

Income condition

There’s no longer a limit on the amount of trading income you can earn from members. The new income condition means that CASCs can’t earn more than £100,000 a year from:

• trading with non-members
• property income

Payments to players

CASCs can pay players as long as they don’t pay more than £10,000 in total to all their players in a single year.

Membership costs

There are new limits on fees and costs associated with membership:

Fees can’t be more than £31 a week (£1,612 a year) (includes any Joining Fee)

If your club’s costs associated with members are more than £10 a week you must provide help, for example a discount to reduce those costs to £10 a week for people who can’t pay more. This discounted membership must be publicly advertised.

Expenses

Clubs can pay expenses for some matches and tours where players take part in and promote the club’s sport.

Participation

At least 50% of a club’s members must participate in sport at the club.

HM Revenue and Customs (HMRC) have published detailed guidance explaining how the new rules work. It’s important that you read this to check whether your club meets the rules.

For clubs who comply with the new rules, no action needs to be taken. For clubs that don’t yet comply with the rules, the deadline to become compliant is 1 April 2016.

Click here for more detailed guidance (and acceptable provisions if membership costs are greater than £520 per year, see sections 2.7 & 2.8) from HMRC.

By GCMA