I am acting for a local golf club, who have so far been treated as dormant by HMRC for corporation tax. They regularly make a deficit from non-member trading, but in 2018 they made a large profit of £25k. At that point they sought guidance, and have a letter from HMRC stating that they can continue to be treated as dormant until 2022. The issue has arisen again this year (mainly due to grant income) they will make a £32k profit, and they are asking me if they will need to submit a return and pay tax. My gut feeling is yes, but I don’t understand why, in 2018, with a large profit, HMRC said no. Has anyone come across this? Am I missing something obvious? They have cumulated years of accrued deficit (£-27k).
3rd Nov 2020
Unincorporated club Corporation Tax
Do they have to pay?
Share this content