EU judgment on VAT provides cash lifeline for clubs

OLDHAM and District Association golf clubs are in line for substantial windfalls following a landmark EU ruling.

The verdict, delivered following a case launched by Bridport and West Dorset Golf Club, means members clubs can claim back four years or more VAT paid in non-member green fees. This also relates to revenue raised from society days. Before this ruling, clubs charged a flat rate for visitors, of which 20 per cent went as VAT.

Clubs such as Crompton and Royton, Oldham, Saddleworth, Werneth, and Brookdale will no longer have to fork out for annual VAT bills, assuming HMRC doesn’t appeal.

As the EU ruled payments demanded by HMRC have been unjustified, clubs can claim back VAT from at least four years.

That will run into thousands of pounds in VAT rebates and provide a major lifeline for clubs at a time many are struggling to overcome the recession and falling memberships.

Crompton and Royton secretary/treasurer John Osbaldeston, a chartered accountant, said his club expected to receive back more than £20,000.

“We have already lodged a claim going back four years, but there is a consensus it should be longer than that because it was illegal in the first place, so the figure could go higher.

I would advise all the other local clubs to approach an accountancy firm with a view to getting their figures together and putting in a claim.”

Gemma Gower, VAT manager at North-West accountancy firm Mitchell Charlesworth, said: “This is an industry-changing decision. Golf clubs shouldn’t delay starting the process of claiming back what is rightfully theirs. The longer they delay, the more VAT they stand to lose.”