Applying to be registered with HMRC as CASC means clubs can benefit in the following ways:
- 80% business rate relief
- Higher fundraising profits with Gift Aid: 25p extra in every £1 donated
- Exemption from corporation tax (if trading income is under £30,000)
Non-domestic rates relief
For most clubs, only paying 20% of the non-domestic rates is a considerable benefit.
This is organised through your local authority but as it is mandatory, they must definitely give it.
The ability to reclaim 25p for every £1 of voluntary donations is a way to increase the value of monetary gifts to your club.
The key criteria for collecting Gift Aid are that those donating are UK taxpayers and fill out a Gift Aid declaration that the Club holds on file.
Corporation Tax Exemption
Sports clubs have to pay corporation tax on their profits. However, a registered CASC is eligible NOT to pay any tax if its turnover is under £30,000.
*This figure has been earmarked by the Government to be increased to £50,000 but as of August 2014, has yet to be ratified by Parliament.
For more information on Non Domestic Rates Relief and Corporation Tax, please see the HMRC Website