HAMPSHIRE RUGBY

PRINCIPAL SPONSORS

 


RFU VAT ADVICE ON “FUNDRAISING EVENTS”

 

I attended the RFU’s VAT advice webinar recently, which did include some helpful advice concerning “Fundraising Events”, and it was said that many clubs do not appear to be aware of the potential VAT benefits, and that substantial amounts of VAT can be at stake. Clearly, this only applies to clubs which are registered for VAT, which many of our clubs are.

 

If a club holds a “Fundraising Event”, and I am aware that some of our clubs do, then ALL income arising from such an event can be exempted from VAT, and this includes bar/catering takings on the day, ticket sales etc. So if such takings were, say, £10,000, then VAT of £1,667 would normally be due to HMRC if the exemption is not applied. HMRC are accepting claims going back up to 4 years for clubs to claim a refund if the exemption has not been claimed for these events.

 

The following are the key points:

1.       To qualify as a Fundraising Event, it must be:

 

a)      Organised exclusively for the club’s benefit

b)      For the primary purpose of raising money, and

c)       Promoted as being primarily for the raising of money.

 

2.       The club must be a “qualifying body”, but the vast majority of clubs will meet the criteria for being so qualified.

3.       Such qualifying income just needs to be classified in the club accounts as “Exempt” and then put through the VAT return as usual. No separate claim needs to be made.

4.       Claims for refunds which amount to less than £10,000 can be made by adjusting the next VAT Return. Claims for a larger amount will require a separate claim.

5.       The club will have extra “Exempt” supplies and this will affect any “Partial Exemption” calculations which may be needed.

6.       It was noted that some clubs had asked if events such as a “Presidents Lunch” would qualify, but the advice was that this would probably not qualify ordinarily, but might do so if the three criteria noted above are closely adhered to.

 

If clubs feel they can benefit from this exemption, they should seek professional advice from their Accountants, or if any club would like to contact me, I will be happy to pass on the benefit of my understanding of this matter.

 

Richard Showan (Finance Chairman: Hampshire RFU)

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