In 2011, HMRC announced a campaign to investigate the tax affairs of instructors, coaches and tutors and the investigations have resulted in a number of clubs and coaches being penalised for issues arising from these visits.
The main issues for clubs and coaches to date has been:
- Payments to volunteers disguised as ‘expenses’
- Payments to casual workers that have not had tax and NI deducted
- Little or no paperwork for payments made
- Missing documentation (e.g. P46, contracts, payslips)
- Payments to self-employed workers (usually coaches) where the coach does not qualify as self-employed
- Issues with the club constitution and the running of the club
- Inadequate record keeping (fines can be up to £3,000 per financial year going back a maximum of six years)
The investigations are likely to continue throughout 2014 and we strongly recommend speaking to your accountant to review the issues listed with them.
Review Your Procedures
You should look to review procedures at your club if you feel that any of these issues may be problematic. We cover these issues in our BUSINESS ESSENTIALS workshop and there are articles on this web site covering most of the issues mentioned.
Contact us on 01952 201657 for a confidential chat if you feel you may be affected by any of the issues raised.