England Golf and counties have made it impossible to collect and pay affiliation fees accurately. They insist we have to pay on a headcount from the previous June 30th, pay before we collect the fees and even for people who refuse to pay us. EG and counties simply don’t understand that most proprietary clubs collect fees mid-way through the current year. That’s what we had to do in year one of business. Opened April 1994, paid then for 1994. Still collecting with April or May subs for the current year!
They just don’t get it because they belong to members’ clubs. Members’ clubs don’t have to pass the fees on to individual members.
One senior HMRC officer, Trevor Probert, made a [correct] ruling that a club cannot collect affiliation fees VAT exempt for England Golf and counties because the club, rather than the individual, is liable. AGCO publicised this decision. EG protested and 56 minutes later HMRC at Whitehall level overturned their own officer’s [correct] ruling.
But we have given the HMRC solicitor one more chance to correct their ruling; if they don’t we lodge papers with the First Level VAT tribunal on 10th January.
Click here and read on: VAT and the mandatory levy