Also couldn't we just charge £57 for parking for the weekend no fees for racing like?
...because avoidance of tax is that simple...possibly about as sensible as getting your boss to class all salaries less than £30k as an ex gratia payment - Not gunna happen
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Whistler 2008 - 15th June til 29th!
Col @ FLi
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I've thought about this quite a bit today, and I can't work out why Jason is getting stung on this and no one else is.
well I can see why the SDA doesn't get hit, but all the other major race series are run for profit.
surely with 300 riders per race, £60 per rider fees, and 6 races, that takes the turn over to over £60,000 a year before you've even considered the sponsors input, pit fees etc etc, and the other events SPS run. So that sends the NPS into compulsory VAT registration doesn't it?
so how come NPS is exempt and Dragons aren't?
any accountants about?
What are they doing differently, or are they next on the list?
I can't comment on how the other Series operate, but I know that the Pearce Series is run by the Pearce Cycles Race Team which is a non-profit making group of volunteers in a registered club.
The Regional Race scene in the UK is so strong right now that it's a huge blow when something like this comes along. Jason's comments on forming a group of volunteers are worth some serious thought though. If even a fraction of the people that race the Dragon Series took on one organisation task each then imagine the money you could save yourselves. And it's possible to help organise and still race...
I've thought about this quite a bit today, and I can't work out why Jason is getting stung on this and no one else is.
well I can see why the SDA doesn't get hit, but all the other major race series are run for profit.
surely with 300 riders per race, £60 per rider fees, and 6 races, that takes the turn over to over £60,000 a year before you've even considered the sponsors input, pit fees etc etc, and the other events SPS run. So that sends the NPS into compulsory VAT registration doesn't it?
so how come NPS is exempt and Dragons aren't?
any accountants about?
What are they doing differently, or are they next on the list?
Our fees for NPS were inclusive of VAT and all our other races have been for over 7 years.
Hmmm... Well I spoke to our accountant too and they explained that although costs with VAT on them cannot be reclaimed and if certain costs are charged without VAT then that cost is as it is and up to the supplier to charge the VAT.
But this still doesn't answer the question of whether as an organiser there is VAT on the costs and in addition VAT on the rider as such.....
On the phone to HM Revenue now so will get to the bottom of it.....
HMRC have told Jason that race entry fees carry VAT and we have also seen a VAT inspector who confirmed that we should charge VAT on race entry fees! Not really sure why anyone would think they are exempt?
They are exempt if running under a club - for example run under Biritish Cycling.
If a race is run as a business and not under the British Cycling then there 'IS' VAT payable by the entrant.
There are no spectator fees therefore no VAT there either.
I have just been on the phone with HR and I would be running mine as a weekend in Wales with a entry to a race - It will be on private land and there are no inclusions of transport to/from the event only at the event on private land.
Other costs such as camping are free so no service provided there either.
This is the way I understand it from talking to them.....
This is because Uni-Travel Limited would be the principle and not acting for a 3rd party.
Borderline Events is a trading name of Uni-Travel Limited and that's who will be organising the race....... me and I am Borderline Events......and I'm Uni-Travel too so I'm not acting for anybody apart from us.
« Last Edit: April 24, 2008, 11:11:33 AM by meanbean »
I just hope the Dragons continue at the end of the day its not a hell of a lot more money
Second that. A tank of fuel, a set a brake pads, a curry and a new bike DVD over the full year?
And for someone who doesn't have luxuries like curry and DVD's? Someone who scrimps to afford fuel to get to work each day? Who's expensive biking hobby is the only enjoyment they get and is forever getting more expensive!
Don't get me wrong, I'll still be doing the races. It just p*sses me off that we get taxed upon tax upon tax upon tax on everything!
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