Gift Aid can be used to generate a tax rebate for clubs through Her Majesty’s Revenue and Customs (HMRC) but we would ask all clubs to exercise caution in this matter to ensure they are applying it correctly.
The only clubs that should be considering Gift Aid are those that are registered as :-
- Community Amateur Sports Clubs (CASC)
- Charitable Incorporated Organisations
- Companies Limited by Guarantee with Charitable Status
We would encourage clubs to read Key UK tax law developments for not-for-profit sports clubs in 2017-2018. You will need to register to read the article in full but registration is free.
In general terms, club subscriptions generally do not qualify for Gift Aid due to the provision of services. However, if a club feels they have a membership structure which complies with the regulations for Gift Aid, they should check this with a tax advisor and/or HMRC before applying for Gift Aid.
Clubs who receive donations and hold collections should look at the criteria carefully as this is likely o be something clubs can claim Gift Aid on, provided that the regulations are followed.
Gaining a tax rebate through Gift Aid is a good opportunity for some clubs, but we would always advise clubs to speak directly to a tax adviser or HMRC in the first instance.