Taxman targets sports clubs

David Knox • Published 22 Jul 2011 09:30 1 Comment

A TWEEDDALE sports club has been hit with a crippling tax bill.

And the Inland Revenue are busily probing the accounts of other teams around the region.

Vale of Leithen have been forced to pay £2000 to cover last season's wages and signing-on fees for players.

And there are fears that further invoices may follow for previous years.

Part-time Borders clubs were warned four years ago that they may be required to introduce PAYE for players - despite the highest earners being lucky if they clear £20 a week.

Hard-up clubs also have to pay accountants' fees to prepare their books for Inland Revenue inspection.

And now the first bill has just come through the Victoria Park door.

Club secretary Alex Currie told the Peeblesshire News: "We were told that the Inland Revenue would look at every club which pays players - almost every club will give at least some players something during a season.

"We were asked to supply accounts and gave them everything they asked for. It was still a bit of a shock when a bill for £1996 arrived."

Most local sports clubs survive on a turnover of less than £10,000 a year.

Any backdated bills could put some out of business.

Mr Currie added: "There is still a chance they could look at the previous years - they could come back at any time.

"We've now introduced tax deductions of 22 per cent on all signing on fees."

Several other East of Scotland clubs - Spartans, Whitehill Welfare and Lothian Thistle - have also been hit with bills.

Peebles Rovers haven't been able to pay signing on fees in recent years and don't expect any crushing demands.

Chairman Colin McDonald said: "We don't have the finances of clubs like Vale as we don't play in the Scottish Cup, and haven't been able to afford signing on fees. I'm sure we will be okay."

Selkirk and Gala Fairydean have both been checked by the tax man, although no bills have arrived.

It is unlikely rugby clubs will escape the new bureaucracy as HM Revenue and Customs officers search for player payments.

But Peebles are unlikely to get any unexpected brown envelopes arriving at the Gytes.

Joint treasurer Donald Swanson said: "We don't pay signing-on fees or wages to our players. Some clubs do but we are not in that position.

"What we have paid our coaches has always had the tax taken off. Everything has always been done by the book."

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This article appeared in Peeblesshire News 22 Jul 11

Have your say. Post a comment on this article.

• 

  AdZc
  Unregistered User
  Jul 29, 19:39
  Report comment

  Sigh, Inland revenue? The picture on the screen has HMRC on it??? IR has not existed since 2005!
  
  Recommend?   Yes 0     No 0

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