An estimated £10,000 tax bill has resulted in Clacton Cricket Club having to withdraw from the Gibbs Denley East Anglian Premier League. The club state that they now cannot afford to complete at this level, which is estimated to cost around £15,000 a season.
The club’s issues with the tax authorities relate to payments to coaches, players, casual workers and incorrect payment of expenses to volunteers. Cricket clubs have been targeted in the current HMRC investigations because of the number of payments being made to casual workers such as bar staff where the club is not making deductions for tax and national insurance where applicable.
We were not prepared to make the cricket club bankrupt. We had fought the HMRC for as long as we could and have taken advice from chartered accountants Baker Tilly. If we didn’t settle now, there would have been significant penalties, week on week, and we don’t want to bankrupt the club.
Pierre Oxley, Chairman, Clacton Cricket Club
We are currently working with a number of sports clubs who are in the process of being investigated. Payments such as those to bar staff will almost always have to be made through Pay as Your Earn (PAYE), i.e. you will have to run a payroll, to ensure you do not have future issues with the tax authorities.