“We’re not Starbucks” was the reaction of one minor cricket club chairman when HMRC looked into his club’s books.
Minor cricket clubs are the latest in a long list of targets by HMRC and many have already received demands and visits by Inspectors wanting to check the tax position is correct.
In several cases, demands for overdue tax have been raised with the threat of penalties looming on the (many) volunteer-staffed institutions. In one club, the underpaid tax of £14,403 was due on untaxed bar staff earnings, accommodation and perks for the professional players and seems to be down to a lack of tax awareness, rather than the arguably more blatant tax avoidance strategies of larger companies more recently reported in the news.
Many clubs fear HMRC’s investigations could mean closure for them as they simply don’t have the funds to make good the overdue tax.
The England & Wales Cricket Board has issued guidance to clubs advising them of what HMRC is looking for and urging them to seek professional advice.
On a related note, Avon Ladies who sell directly to consumers are also on HMRC’s radar. They are being urged to come clean about undeclared income and settle up any overdue tax. Again, HMRC appears to be targeting those who are less likely to be aware of their tax obligations.
The message: seek professional advice and get your paperwork together to help clarify your position to the tax authorities.
To dicsuss your tax situation, please contact Helen Sewell on 01527 558539 or on [email protected]
Curo May 2013
Curo Chartered Accountants is based in Bromsgrove.