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VAT Update for All Sports Clubs and Other Membership Organisations
In the recent First Tier Tax Tribunal case of Esporta Limited it has been found that the late payment of membership fees by defaulting members to reactivate membership is not payment for the continuing use of facilities and subject to VAT, but is compensation and outside the scope of the tax. This may give rise to an opportunity for membership clubs to make retrospective claims for the last four years, as well as reducing their VAT bill in the future.
For further information or advice please contact David Pegg, Partner and VAT Specialist Adviser on 01392 288 555 or at david.pegg@thomaswestcott.co.uk.
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