Limited Company - Membership Fees

amysmum Registered Posts: 11 Regular contributor ⭐ 😼 ⭐
Can anyone help me on this please?

A new limited company has been formed to replace a current club. The club has been completely disbanded and a new company formed by some of the members.

My question is this - How are membership subscriptions dealt with. Are they treated as taxable turnover or will they be treated differently from other income such as payments by members to enter events, sales of club clothing ect. I don't know a lot about clubs but I think memberships are dealt with differently from other income but is this the case if the club is run as a limited company?

Also the company would use members to act as officials at events. I know the rules for income tax deduction for any payment for work done at these events but what about expenses such as fuel and subsistance? These members would be unable to provide receipts as subsistance would probably be from a burger van at the venue and they don't give receipts!!

Could payment for the day be treated as an expense - probably not but just a thought?

Can anyone help with either question?

Many thanks


  • farmergiles
    farmergiles Registered Posts: 1,693
    What type of club are we talking about? Does it include premises? Is there a bar involved? I have dealt with the accounts for a licenced club limited by guarantee so if you want to PM me I may be able to offer some advice.
  • amysmum
    amysmum Registered Posts: 11 Regular contributor ⭐ 😼 ⭐
    Sorry, I didn't make it clear. It was a cycling "club". Basically, the events are monthly races, no premises involved. The limited company will be run from an office in one of the directors homes. The company will not own any premises. Eventually it will have assests such as a vehicle which will be needed to transport other equipment to the various tracks that they book for the day or weekend.

    It will be a small company, probably with a turnover of £50,000 from event entries and maybe another £10,000 from memberships.
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