POTENTIAL VAT WINDFALL FOR SCOTTISH GOLF CLUBS - Ruling may benefit from visitor fee decision

(SGU press release)

An English golf club has won a tribunal against HM Revenue and Customs which could lead to a cash windfall benefiting many golf clubs across Scotland.

A court decision on Friday (3 June) in a case between Bridport and West Dorset GC and HM Revenue and Customs ruled that income from visitor green fees at golf clubs should not be subject to VAT, leaving the club to potentially benefit in thousands of pounds in reclaimed tax.

With many Scottish clubs also having lodged claims over the past year, payments to these clubs could range from £3,000 up to £240,000, which could double with interest added on. However, clubs were urged to remain cautious with HM Revenue & Customs given up 56 days to appeal the decision. Clubs are also advised to continue to account for VAT on visitor income until the outcome of that appeal is confirmed.

Andy Salmon, Scottish Golf’s Development Manager, welcomed news of the potential windfall:

“The tribunal decision will be warmly received by many of the SGU and SLGA’s affiliated clubs, some of whom could be set for a significant financial boost. We have been monitoring the situation closely with our partners at VAT services and keeping our member clubs informed of the progress.”

“Clubs have faced very challenging circumstances over the past three years and those who have submitted claims, no matter how small, will hopefully benefit from this decision. We strongly urge clubs to take professional VAT advice to ensure that they are realising any opportunity that might exist as a result of this ruling.” he added.

Gary Moore, of Glasgow-based VAT Services (Scotland) Ltd who has been working with the SGU and SLGA for the past two years, expressed his satisfaction with the court ruling, having lodged claims on behalf of 29 clubs.

“This is fantastic news for golf clubs. Like many organisations, they have found it tough in the recession and this will be a very welcome boost. We always believed there was a good chance of a successful outcome and we have spent a lot of time preparing and submitting claims for our clients.”

"It is not too late for clubs who have not yet taken action. The opportunity is still there to consider a claim only for the last four years. However, we should also point out while many clubs are set to benefit, not all will.”

The SGU and SLGA offer advice to affiliated golf clubs on a wide range of services as part of their supporting clubs programme, from VAT legislation and child protection policies through to governance and membership marketing. A series of updates has been given to clubs throughout the Bridport and West Dorset case, which was lodged in court back in February this year.

For further information on the SGU and SLGA’s VAT advice, visit http://www.scottishgolf.org/go/club-services/vat-and-golf-clubs.