I've been appointed auditor to a sports club which (inevitably) has a bar, T/O £45k. The clubs rules do not currently return surplus on dissolution to the Members, so technically it's not mutual trading. These rules are being changed to make it mutual.
Is there any way that the bar can be separated from the rest of the club and become a distinct trading entity which is not liable to tax?
The club is VAT registered and owns the premises, so CASC and similar are not suitable. Any ideas?
Is there any way that the bar can be separated from the rest of the club and become a distinct trading entity which is not liable to tax?
The club is VAT registered and owns the premises, so CASC and similar are not suitable. Any ideas?
Replies (1)
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Split it all up
Set up a charitable company and gift the facilities to it to protect them if the club goes down.
Reconstitute the club as another charitable company with a licencre to occupy.
Set up an operating company wholy owned by the club to run the bar and clubhouse, covanent profits to club to avoid Cn Tax.
Think very hard about which bits should be VAT registered.
If paid players hive rtthat team off into another company.