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HMRC internal manual

VAT Business/Non-Business Manual

From
HM Revenue & Customs
Updated
, see all updates

Clubs and associations: Lawn Tennis Association

The Lawn Tennis Association (LTA) is the national body. Below it are regional County Associations and, below them, local clubs.

The subscriptions collected by local clubs affiliated to the LTA from their members include contributions from players that are passed on to the LTA. The County Associations collect the players’ contributions from the local clubs, keep a third, and pass the other two-thirds on to the LTA.

The local clubs are not agents of the LTA when they collect the players’ contributions. They should account for VAT on the total taxable element of subscriptions received from members, including the players’ contributions.

The County Associations collect the players’ contributions as agents of the LTA. They do not have to account for VAT on the receipt. The third of the contributions that the County Associations keep is outside the scope of VAT.

The players’ contributions initially collected by the local clubs are in effect the affiliation fees to the LTA. The LTA must account for VAT on the taxable element of the total amount, not just the taxable element of the two-thirds that it finally gets.

Local clubs should be invoiced by the LTA for any taxable element of the contributions that they have collected. This will allow clubs that are registered to reclaim tax paid on the players’ contributions.