AGM 2023 Proposal: To convert the VAT element of any purchases by members into a donation to the Club.

[ClaptonCFC]

This proposal has not been run through committees because the key to the acceptance is whether finance and the auditors agree it is a viable proposal.

1. The ask is: Pass a resolution that allows the Club to convert the VAT element of any purchases by members into a donation to the Club.

2. HMRC rules allow VAT exemption for purchases by members. The proposal is that we classify all purchases by members as VAT free. However, to increase donations to the club and to stay within the HMRC rules, we classify the VAT portion as a donation to the club. This could apply to entry, merch bar and clubhouse purchases.

3. What needs to be done: (a) The AGM needs to pass a resolution to accept the proposal, (b) the club's payment systems need adaptation to accommodate it, (c) we need a systems that allows this at the point of purchase e.g. show membership card

4. Finance implications: (a) HMRC rules are specific so the Club will need specialist advice to ensure the scheme stays within the rule (b) The club payment systems will need adapting (c) the accounting categories will need to reflect the new scheme (d) We should resolve at the AGM to decide where the donations will be spent i.e are they to be ringfenced.

5. This is a cross committee affecting proposal as it impacts the clubhouse, bar, matchday, merch and finance.

6. There is no timeline because it could be started immediately if the queries are overcome.

Proposed by Sukhdev Johal