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HMRC internal manual

Compliance Operational Guidance

HM Revenue & Customs
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Supporting Guidance: employer compliance: guidance by subject: particular occupations: clubs and unincorporated bodies

You should

  • treat clubs and unincorporated bodies the same as other employers as far as recovery of tax, NICs, interest and penalties are concerned.

Unincorporated bodies may include

  • syndicates
  • mutual associations
  • associations or societies founded to protect or promote the interests of members
  • charitable organisations which are not companies.

It is important to establish and record on the case papers whether a club is

  • a member’s club or
  • a proprietary club.

You should note for a members’ club whether the club is

  • registered under the Industrial and Provident Societies Act 1965 or Friendly Societies Act 1974, or
  • incorporated under the Companies Acts.

You should note for a proprietary club

  • full details regarding the individual, partnership or company that runs the club.

Compliance Checks frequently discover payments without deduction to club officials either

  • on their own authority, or
  • on the authority of committees or sub-committees of which they are members.

There is usually little doubt that those involved are personally responsible, either wholly or substantially. Nevertheless recovery should be sought from the employer. Only where recovery from the employer is not possible will it be appropriate to consider recovery of tax (subject to Regulation 72 direction (COG915180) where appropriate) and penalties from them as individuals COG915175(This content has been withheld because of exemptions in the Freedom of Information Act 2000) COG904570(This content has been withheld because of exemptions in the Freedom of Information Act 2000)