My first post on here, not sure I'm posting this in the correct place! I have just taken on the books for a local bowling club. Although I wont be dealing with the end of year accounts I will be preparing the quarterly VAT returns. Im trying to get my head around the fact that the previous bookkeeper said that the club is exempt from corporation tax, yet has to pay VAT on it sales?
Anyone here deal with clubs similar to this? If so would be grateful for a bit of info.
If this is purely a members club then sales to members are not subject to corporation tax. VAT treatment of sales is different and sales will normally be standard rated, excluding subscriptions.
In a club like this, I would advise you to beware the partial exemption rules. If this hasn't been mentioned by the previous bookkeeper, then it could be an even greater concern.
Potentially there is a problem with the fact that there are standard and exempt supplies (membership fees etc would be exempt) and therefore some input VAT may be disalllowed.
I am sure you already have enough reading in the links that you have been given to HMRC site, but this is an added subject and a half!!
