 Golf clubs - VAT refund opportunities
Time is running out to take advantage of VAT windfalls
In association with the Golf Club Managers Association (formally Association of Golf Secretaries), PKF are currently working for a number of golf clubs helping to achieve considerable VAT savings previously not recognised.
Beating the 1 April 2009 deadline
Overpayments or under-claims of VAT made in the period 1973-1997 can be submitted to HMRC as long as the claim is made before 1 April 2009. Time is short before this opportunity expires and it is important to identify any overpayments now before it is too late.
There are a number of areas of opportunities available to golf clubs which should be explored.
Opportunity 1 – Green fees from non-members
UK law, which imposes VAT on green fees from non-members paid to non-profit making members’ golf clubs, may contravene EU law. There is the potential to make a claim for substantial sums of VAT and interest if submitted before the deadline.
PKF already have a number of golf clubs interested in a joint approach to counsel to explore this opportunity.
Opportunity 2 - Membership subscriptions
Subject to certain conditions, HMRC accept that subscription income should have been exempt from VAT since 1990. If you have previously treated this income, or are currently treating it, as standard rated, there may be a refund opportunity.
Opportunity 3 – Incorrectly posted VAT
Taxpayers are entitled to reclaim overpaid VAT (or under-recovered VAT on purchases) within three years of the error. We have acted for a number of golf clubs where mistakes were made (such as the treatment of VAT incurred on buildings works and incorrect use of partial exemption) and were able to obtain a substantial repayment of VAT.
PKF can assist you identifying whether a potential claim may exist. We offer a free no obligation meeting to discuss these opportunities further or any other VAT queries you may have.
Please click here to contact us for more advice.
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