The VAT man cometh

[muttleee]

My club (Blackwood) has been put up for sale because they've been hit with a VAT bill that's been backdated for 7 years and totals over £0.5 million. They thought they had VAT exempt status like most other (members') clubs but because it's pay and play, the rules for them are different. No one realised this! Here's the story.

Anyone got a few million to spare?! On the other hand, maybe we can sue someone for not advising us properly...

 

[birdieman]

Cripes Muttlee, hope you don't end up having to play through a Tesco carpark!

 

[Mr_Top_Shot]

Who prepared the VAT returns may i ask?

 

[viscount17]

Did the rules change? Looks like the VAT man can not know the rules for 7 years but you are supposed to!

Hope they didn't ask for subs first!

 

[clubchamp07]

Muttlee come and play at Massereene with us on the 6th of April.

 

[Parmo]

Thanks a bit of a nightmare, it could be worse and be bought by American Golf!

 

[brendy]

My club (Blackwood) has been put up for sale because they've been hit with a VAT bill that's been backdated for 7 years and totals over £0.5 million. They thought they had VAT exempt status like most other (members') clubs but because it's pay and play, the rules for them are different. No one realised this! Here's the story.

Anyone got a few million to spare?! On the other hand, maybe we can sue someone for not advising us properly...

So you havent heard the rumour about us (bangor gc) buying blackwood and selling our land for X0 million pounds then? I dont believe a word of it myself, plus, im kind of happy where we are too.

 

[medwayjon]

The clubs' accountant must surely be facing litigation proceedings as it is clear ineptitude on his part.

 

[theeaglehunter]

how much is the club going for do you know?

 

[RGuk]

Typical.....the big brothers of vat and tax wait seven years to look into the status.....

I never realised there was a difference (for this type of thing) between private members clubs and proprietary pay and plays....learn something every day. Well done the accountants....NOT....

 

[Dave3498]

Sounds like a real shame.

The point made by Medwayjon is a good one, but I assume that the Accountant's Professional Liability Insurance route has already been investigated.

 

[muttleee]

So you havent heard the rumour about us (bangor gc) buying blackwood and selling our land for X0 million pounds then? I dont believe a word of it myself, plus, im kind of happy where we are too.

Brendy, I've heard that rumour every year for the last I don't know how many!

 

[muttleee]

how much is the club going for do you know?

Good question...I don't know. It cost around £4 million to build 13 years ago but as for what it's worth now, I've no idea. I'll let you know if I hear.

 

[Mr_Top_Shot]

The clubs' accountant must surely be facing litigation proceedings as it is clear ineptitude on his part.

The problem is i bet the accountants do not sign the VAT return which sort of gets them off. It is the persons who signs the return ultimate responsibilty to make sure it is correct. I would definately have sought legal advice to see if there is any comeback on the accountants

 

[medwayjon]

Or accountant signs our vat return off MTS as we pay him to do the books for us.

We simply write the cheque and post it off to HMRC.

 

[muttleee]

Muttlee come and play at Massereene with us on the 6th of April.

Sounds tempting but doesn't suit unfortunately!

 

[Mr_Top_Shot]

Or accountant signs our vat return off MTS as we pay him to do the books for us.

We simply write the cheque and post it off to HMRC.

If this is the case then as far as i am aware the accountants are the ones responsible for the mistake so you should be able to make a claim against them. As far as you are aware the books have been completed correctly as you have had a (so called) professional do them.