There is a new HMRC Notice on VAT claims by non-profit making sports clubs. Revenue & Customs Brief 10 of 2016 “VAT- unjust enrichment: non-profit making sports clubs”. This replaces their 25/14 and 19/15.
The background is the European Court finding in the Bridport & West Dorset Golf Club case, Dec/13, that UK had wrongly applied VAT to certain supplies by non-profit making clubs. HMRC then refused repayment of overpaid VAT by clubs claiming it would unjustly enrich the clubs.
In the First Tier Tribunal (FTT) case of Berkshire & Others, decided Dec/15, the FTT held there was only a 10% enrichment, so 90% was allowed.
HMRC have not appealed that decision and this Brief 10/16 gives their latest views on how claims will be handled.
Tax Barrister, Accountant