Forget clawing back billions from Starbucks, Google and Amazon… HMRC is targeting village cricket clubs.
At Sawbridgeworth Cricket Club in Hertfordshire, HMRC spent almost five hours going through the accounts for the cricket club. In their findings they demanded tax on one-off payments to volunteers given cash-in-hand for helping out behind the bar or for cleaning.
HMRC also queried the club’s tradition of paying £125 to a few members for accommodating foreign players who coached the team during the 20-week cricket season at their homes and giving them meals.
The club was sent a bill for £14,403 plus £3,000 in ‘penalties and interest’
HMRC eventually waived some of the penalties. But the 151-year-old club was forced to take out a loan, and to ask its 350 members to help pay the final bill of almost £15,500.
If your local sports club is in a similar position then they may be at risk. Please contact one of our tax team for further advice or call
0161 249 5040.