Austerlands survives the taxman

Photo: Picture: DARREN ROBINSON

TAXING TIMES . . . Austerlands committee man Neil Cadd admits the club could have closed.

Austerlands Cricket Club was in danger of folding after being issued with a tax bill for more than £8,000.

The club, one of the founder members of the Saddleworth and District Cricket League, was asked to cough up the money by HMRC for unpaid National Insurance for employed professional cricketers and other club liabilities over the past six years.

But after receiving the bombshell, club officials had talks with HMRC and managed to get verbal agreement on a substantial reduction, allowing officils to breathe more easily.

Committee member Neil Cadd said: “They originally asked for over £8,000 — it was like a ton of bricks descending on us. It would have almost certainly shut the club.

“Where we could have got that kind of money from? It wasn’t as though we could dip into the bar

takings or other revenue streams as we have had such poor summers lately.

“Even now, with the reduced figure, we may need a whip-round of club members and pay the money back over time.”

The England and Wales Cricket Board issued a tax guidance document yesterday for clubs subject to a PAYE compliance check by the HMRC. It said the purpose of these requests is for the HMRC to confirm whether PAYE and NI is being applied correctly and that clubs should “take great care” in responding.

It urges clubs to get professional advice and not to accept HMRC calculations without challenge.

Cadd added: “HMRC was very fair with us and we are as happy as we can be with the verbally-agreed figure. We asked for a proper meeting to sort it, and we would insist other clubs do the same.

“We weren’t trying to pull the wool over anybody’s eyes, we just didn’t know we had to pay this money on the amount we paid professionals.

Austerlands is one of five clubs in the Saddleworth League investigated or under investigation by HMRC.

Hollinwood got the all-clear, Glodwick had to fork out £3,700 — the sum reduced after negotiation — while Shaw and Stayley are waiting for a final figure.

Shaw recently paid more than £500 to the taxman for last season’s professional. HMRC is going through the club’s books for the past four years.

“This is the reason we don’t have a pro this season: we just don’t what is going to drop through the letter box,” said Shaw president Mark Stafford.

“The team is struggling as a result. Everyone is down in the dumps. We all know ignorance is no defence, but we are talking small beer compared to other organisations.

“We are just a small cricket club. We don’t employ a groundsman or bar staff. They are all volunteers.

“Where will it end? Are we going to take a couple of quid back from the coaches who look after the youngsters because we give them £25 for doing it in their own time? That money comes from the children’s parents in the first place.”

HMRC says it wants to ensure sports clubs operate their payment systems correctly and pay the right tax, and will work with sports clubs to put things right if necessary.