Press release: Clubs urged to use the ‘13th man’, as FA Cup begins
With the FA Cup starting this weekend, the Association of Taxation Technicians (ATT) is urging amateur clubs to look to the taxman as their team’s ‘13th man’.
While the home fans who watch in the stadium are often credited with being the ‘12th man’, the ATT is reminding amateur teams of how the tax system can also help clubs such as those competing in the early rounds of the FA Cup, to raise their game.
Yvette Nunn, Co-chair of ATT’s Technical Steering Group, said:
“Being a well-run amateur club includes understanding how the tax system might help the club’s finances, while keeping HMRC onside.
“We would like to highlight one particular aspect of the tax system which is specifically designed to assist amateur sports clubs. Registration as a Community Amateur Sports Club (CASC) can bring a club very similar benefits to having charitable status. These benefits include exemption from tax on bank interest, capital gains, trading profits (provided the club’s annual trading turnover is less than £50,000) and rental income of up to £30,000 a year. In addition, the Gift Aid scheme applies to qualifying donations to a CASC from individuals.
“The tax exemption on capital gains is a particularly valuable one for a club that is looking to sell its ground for redevelopment and relocate to new premises.
“These tax benefits inevitably come with quite a lot of terms and conditions. It is essential that clubs consider carefully whether the potential benefits of CASC registration justify both the work involved in applying for registration and any constraints that the CASC rules might impose on them.
“Successful registration as a CASC should definitely not be seen as a step on the road to a Wembley FA Cup Final but it just might give an amateur club more grounds for optimism of a moment of fame by making it through the early rounds of the FA Cup.”