The UK government’s webpage on registering a Community Amateur Sports Club (CASC) provides information on how to set up and register a CASC, which offers tax benefits and other advantages for eligible clubs.
Eligibility
To register as a CASC, your club must:
Be open to the whole community.
Be organized on an amateur basis.
Have as its main purpose providing facilities for and promoting participation in eligible sports eg football, badminton and basketball.
Not distribute profits to members.
Benefits of Registering
Tax reliefs on income, gains, and donations.
Business rates relief.
Gift Aid on donations.
What CASCs do not pay tax on:
- bank interest
- Gift Aid donations (note that you cannot claim Gift Aid on membership fee)
- capital gains (profit from selling or disposing of an asset)
- trading profits if your turnover is less than £50,000 a year (£30,000 before 1 April 2015)
- income of up to £30,000 a year from renting out property (£20,000 before 1 April 2015)
If the money comes from members with full voting rights, you also will not pay tax on:
– income from membership fees
– profits from selling food and drink relating to the club’s sporting activities such as a members bar.
What CASCs do pay tax on:
You must pay tax on money that is not used for qualifying purposes.
You must also pay:
- VAT – although you may be exempt for fundraising and sporting activities
- tax on income of more than £30,000 a year from renting out property
- business rates, but you can apply for relief of up to 80%
- tax on trading profits if the turnover is more than £50,000 a year
You’ll have to pay tax on the full amount, after deducting any allowable expenses, if your trading or rental income is more than the relief limits.
How to Register:
Ensure your club meets the eligibility criteria.
Complete the application form and submit it to HMRC.
Await approval, which can take up to 40 days.
Managing Your CASC:
Once registered, you must:
Follow the rules for CASCs.
Notify HMRC of any changes to your club.
Submit annual accounts and reports.
Phoenix Debola 
Note:
CASCs are treated as companies for tax purposes.
Your CASC will need to pay Corporation Tax on any income or capital gains that do not qualify for tax relief. This includes gross profits from trading over £50,000 a year.
Your CASC needs to spend all of its income and gains on ‘qualifying purposes’ or it will lose some or all of its tax reliefs and the club may get a tax bill. Qualifying purposes means providing facilities for eligible sports and encouraging people to take part in them.
If HMRC asks you to, you must complete a company tax return for your CASC and pay tax owed by your CASC.
Posted by Phoenix | February 1, 2025, 11:23 pm