Big cash payout for private members clubs

Private members clubs could be getting a big hand out from HMRC as they will be paying back VAT on green fees.

HMRC has said it ‘accepts that supplies of sporting services made to both members and non-members by non-profit making members’ sports clubs can be treated as exempt from VAT’ and is offering guidance on how money can be claimed back.

The announcement follows a landmark legal decision concerning the repayment of VAT on green fees at private members’ golf clubs. The First Tier Tribunal ruling last December will result in hundreds of private members’ golf clubs being repaid significant amounts of VAT and interest on green fees.

“Existing claimants and new claimants may both find they need to take action,” states HMRC.

“Where your existing claim is still open, or it has not yet been considered by HMRC, you should now review your claim.

“If a claimant wishes to claim any additional amounts in respect of non members that were either overlooked or the result of calculation errors for accounting periods in the original claim, that claim can be amended.

“You should then make any necessary adjustments before deciding how and whether to proceed with the claim.

“To ensure that all claims are dealt with correctly and appropriately, claimants who wish to proceed with their current claims are asked to provide a timeline of their claims and subsequent appeals so that HMRC can cross-check these to the details they already hold.

“Any claims submitted now will be a new claim subject to the four year time limit. Rejected claims that were appealed to the First Tier Tribunal are still open.”

HMRC states that for claims made before April 1, 2009, the earliest period a golf club could have claimed for must have ended no earlier than three years before the date of the claim.

“For example, if your claim was submitted on 31 March 2009, the earliest period you could have claimed for must have ended on or after 31 March 2006,” it explains.

So make sure your golf club gets its fair share!

For more on another landmark ruling and how it could affect you click here or on the image below.