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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3930
Experience:  FCCA FCMA CGMA ACIS
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I am the trustee of a cricket club , VAT and CASC registered

Customer Question

I am the trustee of a cricket club , VAT and CASC registered .Our ncomecmes from
1. Bar Sales (memeber and external Functions ) c40k
2.2 Telecom Masts - £10K
3.Hire of Function room for Training/Meetings -£5K
4.Hire of Pitch - very small <£1k
5.Subs and Match Fees - <£1k
We have a number of things going on at the moment
1.Solar Panel fitted £11K (thu' interest free ECB loan )
2.Purchase New Mower £15k
3.Build of a stewards flt (upstairs in main club building ) £13k
4.Grants for Net Facility £30k
Could you advise me which if ay of these cannot recover VAT on .I m confused as to whether we have EXEMP inputs/outputs and whether apportionment apleas and what the implications of the de-minimis apprtionment value means.
We need to be able to advise these various bodeies advancing us money whether we can or can't recover VAT , so any advise welcome
WE NEED
Many Thanks
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to assist you with your question. Although sports activities are, in general, exempt from VAT, your club is in a different position. Bar sales, Telecom Mast rentals and hiring out of function rooms are all standard rated supplies. These, however, do not aggregate to the VAT turnover threshold of 82K, It would appear from the tenor of your question that your club is already registered for VAT. You can therefore reclaim all input tax suffered on your quarterly return. The exempt supplies you make may result in the amount of input tax being reclaimed reduced pro rata. However, there is a de minimus test applied in such cases ie where exempt outputs are small. HMRC will send you a form for this at intervals and you may well find that all input tax is reclaimable. I have actually run a relatively large organisation in a similar position to yours and we were able to recover all VAT inputs. I do hope that my reply has been of assistance.

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