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club accounts and treatment of annual subs of Directors

I am working for a golf club which is run and owned by members. Each year a new Captain is appointed, together with a vice Captain and various other officers. These officers are registered as directors as they run the club (which is a Limited company).

Each year the Captains raise money for charities and work on behalf of the club. They are not remunerated at all, but they do have their subscriptions to the golf club waived.

Should these captains have a P11D completed each year - they are not paid by the club?

Your thoughts will be appreciated.


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First, what is the benefit assessable?  The subscription is being waived, and that being the case, using Pepper v Hart, what is the marginal cost of the benefit to the club?


There would be no need to complete form P11d, as forms P9d can be completed where:-

they earn at a rate of less than £8,500 per yearthey have no material interest in the company - see below for explanationthey are either a full-time working director or a director of a charity or non-profit organisation

And id you can get away with a form P9d, there is no benefit asessable!!



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29th Dec 2012 13:56

Yes, but...

...consider that, in Pepper v Hart, there was no suggestion that the benefit was reward for services because the schoolmasters were already fully remunerated via their salaries. The reduction in fees was therefore truly a "perk". 

But, in the case we are considering here, the membership fees of the Captain and the other directors are waived in consideration of the work they do for the Club - ie there is reward for services.

The amount of the fees waived might therefore count as earnings within s62(c) ITEPA -                       "(c) anything else that constitutes an emolument of the employment". 

Because the Club is a Limited Company also consider whether disclosure is required in a Note to the Accounts of "Directors' remuneration and other benefits".

Pepper v Hart is not relevant to the  amount of remuneration or benefits to be disclosed in the Accounts Note because the case only applies to Income Tax.

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29th Dec 2012 18:55

.Thank you both for your comments.


The club is a golf club which is a private members club. The membership fees are £1,000 for the year. The captains are not remunerated for the work that they do within the club except for the fact that they have their subs paid for that curent year and I suppose it is considered to be a 'perk' for being a director. They do chair committee meetings, and interview perspective new members and staff as well as promoting the club speaking at meetings and presenting prizes. I don't think that the vice captains have their subs free as they automatically become the captain the following year and undertake that particular role.

I am none the wiser whether a P11D should be prepared or not or whether the club could/should consider a dispensation as the role is vital to the club - and we may not get any volunteers for captain roles in the future.




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The summary of the above is that you should complete form P9D for each member concerned.


I think it is highly unlikly that HMRC would consider a dispensation - as they will only grant this if it is a tax deductable expense of the employment.



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