VAT Countdown Under Way

The countdown begins for clubs to sort their finances out - with new VAT legislation due to take effect in the new year.

Customs & Excise plans to stop commercially-owned clubs from benefiting from the VAT exemption available to non-profit-making organisations.

Golf clubs are at risk of losing their exemption if they distribute profits to other than sporting charities or use profits for any other purpose than improving sporting facilities or supporting charities.

They are also ineligible if they make payments based on profits or turnover; pay more than £1,000 for land or property rights granted after April 1996 from a person associated to the club; pay them consultancy fees; or pay above the market rate for any goods or services.