Community Driven Football Club - What Should I Do?

CeePeeBee

Hi all - hoping you can assist.

In April the football club I was part of, which was a Ltd organisation, closed it's doors. The guys I played with very much wanted to continue the football, and the regular sessions, so I agreed that if everyone could stump up the regular memberships, I'd take on the admin of putting training on, paying the pitch fees, organising the referee etc.

Fast forward and we're growing....quickly! We've grown 25% in terms of membership, and I'm ploughing that money into community-voted for value additions (social events, additional games, coaching, etc).

Now, I'm well aware that HMRC in their infinite wisdom would see this as income, regardless of what I'm doing with it, so my question is, what should I be doing that I'm not doing now?

Should I be registering as some sort of NFP or Social Enterprise? Should I register as a Ltd company? What are the implications?
We're getting websites setup etc to alleviate some of the manual admin burden, but I'm then thinking about health waivers, and GDPR, etc.

At this point I really don't know what I don't know, so it's hard for me to ask much deeper questions, but hope that the scenario I've painted for you helps with any answers.

Thanks in advance

Savvy_Sue

I'd get in touch with your local voluntary services council and get some up to date information on the sorts of organisation that might be appropriate, eg a Community Interest Company.

At the very least you need a club bank account.

tightauldgit

I'd certainly be looking to get my own personal liability capped as soon as possible - I'd hate to think a player with a broken leg or a fan who falls over in the car park would come after your house in compensation so at the very least make sure you've got good insurance and look into a CIC or something suitable as a structure. 

CeePeeBee

Just as a heads up, I am not an "organisation" currently; not Sole Trader, not Ltd, nothing as yet.

tightauldgit

CeePeeBee said:

Just as a heads up, I am not an "organisation" currently; not Sole Trader, not Ltd, nothing as yet.

Yeah but the thing is you are but probably by accident. 

If you are taking in income and spending it on the 'business' then chances are you are a business and you might accidentally be taking on liabilities. That's why it's important to get things sorted and formalised properly ASAP so that it's all clear. 

I mean chances are everything will be fine, but you've just got to make sure you are protected. 

It seems from your post that your club is well beyond the stage of everyone chucking in £4 to play fives down the local bit of grass so you need to get things sorted. It's easy enough to set up a Ltd company, I think a CIC is a bit more convoluted and you need a board etc. 

Savvy_Sue

tightauldgit is quite right, if anything goes wrong, you are the organiser... You need a little organisation alongside you.

Two further thoughts from me: 
What resources does the FA have for small community clubs? 

HMRC recognises Community Sports Clubs as a category which can use the Gift Aid scheme, you don't have to be registered as a charity. Well worth investigating, I've not used it so can't say what you need to do to benefit.

CeePeeBee

tightauldgit said:

CeePeeBee said:

Just as a heads up, I am not an "organisation" currently; not Sole Trader, not Ltd, nothing as yet.

Yeah but the thing is you are but probably by accident. 

If you are taking in income and spending it on the 'business' then chances are you are a business and you might accidentally be taking on liabilities. That's why it's important to get things sorted and formalised properly ASAP so that it's all clear. 

I mean chances are everything will be fine, but you've just got to make sure you are protected. 

It seems from your post that your club is well beyond the stage of everyone chucking in £4 to play fives down the local bit of grass so you need to get things sorted. It's easy enough to set up a Ltd company, I think a CIC is a bit more convoluted and you need a board etc. 

Thank you so much for this post. I honestly don't describe myself as a moron, but I simply haven't delved into these particular waters before, so this was a great help.

So, purely hypothetical question as I know nobody will want to actively point in the direction, but would you suggest somebody who was organising a bunch of people, taking membership money and using that to book pitches, pay for kit, etc, to do the following:
- register as a Ltd company?
- get an accountant to manage the financial side of things?
- get some form of PLI?

My biggest fear is dealing with some form of self-assessment with HMRC. Long story short but I was burned for £6k at a previous company where taxable benefits were not disclosed and as such I got hit with the bloody bill.

Any advice or direction pointing would be of assistance.

CeePeeBee

Just by way of an update, I've reached out to a few local accountants who manage startups and the like to see if they can give me some advice as to how to proceed too.

Savvy_Sue

Personally I'd want the insurance above all else ...

Look around your players. You need a small level of organisation to get a bank account: a chair, treasurer and secretary. Go back to my first post about local voluntary services.

Before even considering a ltd, why did the previous one fail or close?

Talk to other local teams, pinch their best ideas ...

penners324

As advised. Register as a Community Amateur Sports Club. It is a recognised registration by HMRC.

No need for expensive accountants 

penners324

Ps my cricket club has been running for 109 years and has never been registered (as a CASC, CIC or a CIO). It has a constitution and it's own bank account.

I think you're over worrying