Community Amateur Sports Clubs (CASC)
Update August 2016
De-registration letters from HMRC have started to be distributed to Clubs.
Under the NEW regulations, HMRC have a number of reasons for cancelling the registration of a Club as a CASC;
- The Club does not and cannot comply with the amended CASC legislation.
- The Club is not “open to whole community” because its membership form and constitution requires new applicants to be proposed and seconded by two existing club members.
- The Club does not have satisfactory arrangements that enable members on low & modest incomes to fully participate in a Club’s activities for less than £520.
- The Club has income from property & trading with non-members that exceeds £100,000 per annum.
- The Club has not completed a self-assessment checklist.
- The Club's Constitution does not contain one or more of the statutory clauses
De-registration letters clearly explain that Clubs have 30 days to appeal against the decision to cancel their CASC registration. Please contact our CASC helpline if you need any further advice or guidance regarding your appeal.
Update April 2016
HMRC is aware that some CASC registered golf clubs have submitted VAT repayment claims following the Bridport and West Dorset Golf Club's European Court of Justice decision. These claims relate to output tax which was paid on visitor green fees in previous years. If a club does not pass on to the affected customers the repaid or credited amounts of output tax there may be direct tax implications. For example, trading income from non-members is taxable. Any surplus of non-member income that remains after deduction of relevant expenses is liable to Corporation Tax.
Currently CASCs can earn up to £100,000 from non-member trading and property income, this rule is called the income condition. If a club exceeds this limit then they can be deregistered from the CASC scheme. HMRC has agreed that any taxable trading income arising from these VAT repayment claims can be excluded when a club is working out how much non-member trading income they have for the purposes of the CASC income condition.
Update October 2015
Following several enquiries from various sports HRMC have now clarified the position as to whether life memberships would continue to not be permitted in the CASC scheme under the new regulations.
HMRC have stated:
Going forward, life, or honorary, memberships will now be permitted in the CASC scheme and bodies/clubs will no longer be asked to remove reference to them in their governance documentation.
Should there be any further details to add to this clarification this page will be updated accordingly.
Following our recent CASC workshops the presentation slides are now available to download. Accompanying notes will be added shortly.
You can also download the following handouts:
- HMRC letter to existing CASC clubs and self-assessment checklist
- De-registration guidance (from HMRC)
- CASC and charity comparison
Update July 2015
HMRC have updated their guidance on the 12 month grace period for current CASC clubs. Please read the HMRC guidance here.
Update June 2015
HMRC have indicated that they will be writing to 3000 CASCs in June providing clubs with a self-assessment checklist to complete. This will then provide the club with three options:
- If the club still qualifies under the new conditions, complete the self-assessment checklist and return it to HMRC.
- If the club no longer qualifies under the new conditions either, complete the self-assessment checklist and return it to HMRC indicating that the club does not wish to remain a CASC or;
- Complete the self-assessment checklist and return it to HMRC explaining that you wish to make changes to remain in the scheme. You will need to then make the necessary changes before the 1 April 2016, after which HMRC will write to you to check that you have made the required changes.
*Please note - Any changes required to meet the new criteria must be made before the 1 April 2016. It is important that should you receive a letter from HMRC that you reply, failure to do so may result in deregistration and exit charges.
Clubs that do not receive a letter from HRMC do not need to do anything if they meet the new conditions or will need to make the necessary changes before the 1 April 2016 if applicable. Clubs that wish to withdraw from the scheme but do not receive a letter from HMRC will need to write to them and state your desire to be removed from the CASC scheme. This will then take effect from the 1 April 2016.
The revised CASC scheme will come into force on 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. The CASC Regulations 2015 have seen a number of changes introduced following almost two years of consultation.
The revisions to the scheme introduce new or amended rules in a number of areas including:
- An increase in the corporation tax exemption thresholds on trading and property income to £50,000 and £30,000 per annum respectively
- The extension of corporate Gift Aid
- An upper limit on annual membership fees of £1,612
- A £520 threshold for membership and the costs of participation in club sporting activities, above which clubs must make provision for those on low incomes
- A cap on total trading (non-member) and property income of £100,000 per annum;
- A requirement for at least 50% of members to participate in club sporting activities and
- The ability to pay players up to £10,000 per annum.
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, there is no action that needs to be taken. For clubs that don't yet comply with the rules, the deadline set to become compliant is 1 April 2016.
In addition to the detailed guidance available from HM Revenue and Customs (HMRC), Sport England through the Club Matters website will shortly have further guidance available with specific support on Trading Subsidiaries.
If you have specific queries or issues to resolve we would always recommend taking proper professional advice.
To find out more information you can look at the Community Amateur Sports Club website, a dedicated CASC website run by the schemes main stakeholders. This website provides you with details of the new regulations, the guidance, key forms and FAQs.
You can either get in touch by using the enquiry form on the cascinfo website (this will direct your query to the specialist CASC advisory team).