Tax Benefits for Cricket Clubs |
A government tax scheme for Community Amateur Sports Clubs (CASCs) cuts 80 per cent off local authority business rates and offers tax rebates of £2.82 for every £10 the club receives in donations. Despite the benefits, the take-up of the scheme has proved disappointing.
Thornton Cleveleys Cricket Club has become cricket's 1,000th club registration under the little-known tax scheme for Community Amateur Sports Clubs (CASCs). Since 2002, over £10 million has been injected into 20% of the amateur cricket clubs in the UK under this scheme. Sadly, this take-up level has not been reflected in other sports where, currently, only 5% of sports clubs as a whole have registered. If a greater percentage signed up to take advantage of the scheme, an extra £40 million a year income could be available to them.
So why are clubs so reluctant to sign up? Are the terms and conditions too difficult, or is the registration process simply too complex?
Broadly, sports clubs are eligible if:
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(i) they are open to the whole (local) community, irrespective of age or gender
(ii) they are organised on an amateur basis, i.e. they must not/cannot pay their players
(iii) their main purpose is to provide facilities for - and encourage participation in - recognised sports.
Some clubs, perhaps, are put off by the potentially draconian provisions for those that abuse the scheme, whilst others are suspicious that registration is a 'honey trap'. However, this is NOT the case; HMRC has been very supportive of CASCs and is a founder member of the CASC Development Forum.
Several cricket clubs have expressed the view that the scheme helps only those that own their grounds and/or the property thereon because of the rate relief - but they overlook the Gift Aid tax rebates. That said, it is both unfortunate and unhelpful that the Treasury refuses to extend the rebates to include junior sections membership subscriptions and so encourage more clubs to recruit young players into the sport.
According to Richard Baldwin, Chairman of the Community Amateur Sports Clubs Development Forum, the main reasons for the low take-up of the CASC scheme are ..."a lack of awareness (of it) and the need to motivate club volunteers who prefer to be playing sport rather than filling in forms for HMRC (sic)"... If he believes these to be the reasons, then, (a) it begs the question why, over the past 7 years, he and his CASC Development Forum have so obviously failed to get their message across; and, (b) he does not understand the commitment and dedication of the vast majority of volunteers to the best interests of their clubs!
A dedicated website - www.cascinfo.co.uk - has been set up to provide information to clubs. In addition, HMRC has a section on its own website offering comprehensive guidance. Whilst some National Governing Bodies (NGBs) such as the ECB and the RFU, have done an excellent job of promoting CASCs; the latter, particularly, by running regional workshops for its member Constituent Bodies, far more could - and should - be done by the many other NGBs.
The lack of promotion of the CASC scheme by Local Authorities also has been particularly disappointing, with the majority of Sports Development Officers either unaware of it, or failing to provide the information on their websites.
Whilst the Government should be congratulated for introducing CASCs, nonetheless, as with most tax incentives, they have left it to others to advise on and promote it!
Has YOUR cricket club Committee looked at the possibilities and opportunities available to it under this CASC scheme?
(Note: If it has - and decided subsequently to reject the concept - please tell us and let us know why to: info@onsidecricket.org.uk )
