VAT Distortion in the Golf Industry

Mention the word VAT and a lot of people, myself included, generally switch off.

However, please read on – this is important, particularly if you are involved in the proprietary sector of the golf club industry.

I have lifted this next section from The Association of Golf Course Owners’ web site:

The Trouble with VAT

The unfairness came about through Article 13 of the Sixth Directive of the European Union. In 1990 it became mandatory for the UK to follow certain European Union nonsenses. This was one of them.

Article 13 dictates that certain things should be exempt from VAT because they are in the public interest. Things like children’s education, health, dentistry and sport. In other words they are considered to be good for people.

But in sport the provision is that there should be a VAT exemption for certain services closely linked to sport provided to individuals by non-profit making organisations. For that reason social memberships of golf clubs aren’t VAT free; they aren’t closely linked to sport. Corporate memberships aren’t VAT free; they aren’t supplied to individuals.

That’s all quite clear. What is absurd is the next bit. It is exempt if supplied by a non-profit making organisation (in taxman’s blurb – an NPMO). If supplied by a commercial organisation it isn’t exempt. This, of course, is clearly unfair for the consumer. There are clear provisions in the EU legislation allowing Governments to make their own regulations to avoid distortion. The Conservative Government failed to deal with this in 1993 – despite lobbying from the commercial sector. The Labour Government made it worse in 1999. Frankly some of golf’s governing bodies fought to keep the distortion to favour members’ clubs!

In English Law, followed by the taxman, there are considered to be two types of clubs. One is the non-profit making members’ club. The other is the profit-making proprietary club. It doesn’t seem to matter how much profit a members’ club makes, the VAT man still bends over backwards to treat them as non-profit making. Their members get VAT free golf subs. Conversely it doesn’t matter how little profit (or even loss) the proprietary club makes, the VAT man treats it as profit making and the member must pay VAT – now 20%.

We make no bones about it. One of our great non-profit making members’ clubs is the Berkshire. (You too can download their accounts from Companies House for £1.) In 2009 they took £850,000 (excluding VAT) in visitors’ green fees. Between 1999 and 2010 their green fee income was £8.3 million. That’s quite a subsidy for the 600 members who play on their two glorious courses. But the VAT man still treats them as non-profit making and their members get VAT exempt golf. And then there is Sunningdale -with its £1 million of green fees. No tax and VAT free golf for members!
Most small proprietary golf clubs couldn’t dream of a total turnover of £850,000 in a year. Yet their members pay VAT. So do those at public courses. Absurd? Of course.
The UK interpretation of European VAT law is really –

“Sport is good for you and should be exempt from VAT – providing you are wealthy and belong to a posh club. The man in the street can pay VAT on his sport.”

Get Into Golf!

 

Now is the perfect time to sign up for one of Fynn Valley Golf Club’s great value courses to get into golf.

 

The beginning of March sees the return of our successful project “Here Come The Girls“, aimed at introducing women to golf in a fun and relaxed group setting. Coaching is delivered in groups of ten and included within the cost is unlimited use of the par three golf course for the duration of the coaching. Lessons are delivered at weekends and in the evenings, no experience is required and all equipment is provided for the inclusive cost of £45 per person.

 

Men are not forgotten with “Here Come The Boys” also starting in March, run along the same lines at the same cost.

Here Come the Girls and Here Come the Boys are run by PGA Fellow and Fynn Valley’s Director of Golf Alastair Spink. Contact Alastair direct by alastair@fynn-valley.co.uk  or visit his web site

 

In addition, PGA Assistant Professional Chris Smith is running Golf for All classes, an opportunity to learn to play golf and experience our warm and friendly atmosphere. 8 one hour lessons covering all aspects of the game with the final lesson on the course and an opportunity to play a few holes! No previous experience is necessary. Learn a new sport in a friendly & fun environment. Tuition will start at the beginning with the basics of grip and set up. Rules & etiquette also included! Group Coaching - Learn to play with friends or join a group and meet new people. All Equipment provided - Clubs during the lesson provided FOC. Social - Coffee and refreshments included. Casual dress code. £25 per person. 

For further information and to reserve your place please contact: Chris Smith on 01473 785463 or 07850052888, see the downloads below or email him

 

Every Saturday at the Golf Range there are Junior Group lessons for non members from 1-2pm, costing £3.50. Coaching is from Assistant PGA Professional Chris Smith and all equipment is provided. The minimum age is roughly five years old, up to a maximum of 15 years old. These sessions are very relaxed and informal and a great way to gauge whether golf is something a child will enjoy. There is no need to book in for these sessions, just come along. Very occasionally a session may not be running due to other commitments, so a telephone call in advance may be a good idea: 01473 785267 option 1.

 

Those adults with some experience of the game can take advantage of the Club’s great 15 month’s membership for the price of 12 offer on all categories of membership – Par Three for beginners, Cowslip for intermediates and Full membership. With no joining fee and monthly payment options, the benefits of club membership are more affordable than you think!

 

The club welcomes all enquiries and are open to visitors for green fees, range use and meals and drinks. Visit them today or call 01473 785267 to find out more or visit their website www.fynn-valley.co.uk

Happy Christmas!

Today is the Winter Solstice and so we can now look forward to lengthening days resulting in more time to get everyone around the golf course (sometimes a challenge on a busy Saturday!) Thank you to all our members and visitors for your patience in the busy periods during short daylight hours.

Christmas is rapidly approaching and I am sure I am not alone in looking at my “To Do” list in ever increasing despair! As long as I remember to pick up the turkey I am doing better than has been known previously….

The forecast is looking positive for our annual Boxing Day Cross Country Scramble. This is always well supported by members and their guests, and the course plan this year involves such challenges playing from the 14th yellow tee to the 8th green! A really good fun way to get rid of some of the Christmas Day excesses. It’s a shotgun start at 9.30am, just come along (members & guests only).

We wish you all a very Merry Christmas and a Happy New Year and we look forward to an action-packed 21st year in 2012.

Suffolk Coastal Invite Me to Present….

This is a first…..

I would have to be perfectly honest and say that public speaking is something I have so far managed to fairly successfully avoid in my career. Until now….

Two weeks ago, Suffolk Coastal District Council (our local council) telephoned me and asked me to run a workshop on “Using Social Media to Promote Your Sports Club” as part of a free seminar for local sports clubs. They had chosen me, they said, as I used social media so well to promote Fynn Valley. Caught somewhat unawares and very flattered, I agreed.

It is now all systems go to get a 30 minute presentation together. Thankfully I have Alastair Spink, our Director of Golf who also runs the Suffolk Golf Partnership and Selina Flynn, Director of Business Vitamins marketing agency, to lend a helping hand.

The evening in question is on Thursday 19th January from 6.30-9.30pm at Suffolk Coastal’s offices. Entitled “Grow Your Sports Club”, places are free and there are also workshops on Recruiting & Managing Volunteers and Local Funding Advice. Interested in coming along? Email active.communities@suffolkcoastal.gov.uk or call Sarah Shinnie the Suffolk Coastal Sports Development Officer on 01394 444652.

And in the meantime….. follow me on Twitter!

Christmas Brings a New Collaboration!

Well, we have so far escaped the snow which brought business to an abrupt halt this time last year, in fact there has been some fantastic weather for golf over the last few weeks. Long may it continue.

Our catering side is already well into the swing of Christmas, with parties and lunches galore. The exciting news is that we have joined together with The Arboretum in Ipswich to form The Arboretum at Fynn Valley Golf Club.

The Arboretum in Ipswich’s High Street has a well deserved reputation for providing outstanding food using the freshest local produce. Owner Head Chef Ben Taylor is a member at Fynn Valley and approached us with the idea of expanding his thriving operation into the Club, providing members and visitors with his unique take on traditional meals. Sourcing his supplies locally wherever possible, Ben wants his message to be one of delicious food, freshly prepared, that is both local and sustainable. Ben was a participant in last year’s  Master Chef – The Professionals, reaching the quarter final 24 out of 10,000 entrants and the club are very excited about working with him and his team to progress the catering at Fynn Valley. With meals served either in the cosy refurbished Courtyard Bar or spacious Restaurant on busier occasions, we want to be the place you bring your family and friends for a meal, and, once you see Ben’s delicious food and exciting new menus, we think we will be! The menu developed by the team has something for everyone – from a savoury snack for only £1.00 to a substantial three course evening meal…. Sunday Lunches in the beautiful restaurant are excellent value at £7.95 for one course, £12.95 for two courses and £15.95 for three courses. Children welcome.

Click here to see the menus for December.

To be among the first to sample this change at Fynn Valley, call 01473 785267 to book your table or email us

Christmas tree at Fynn Valley

How to Communicate with Members?

In common with all clubs, we have great difficulties communicating with our members. There will always be the reliable regulars who will take notice of information provided to them.

But there will always be a large amount who don’t.

So how do we tell them what is happening at the club? I wish I had a pound for every member who has turned up and grumpily stated “I didn’t know there was a competition on today” when they can’t get out on the course at their regular time.

How do we currently communicate what’s happening at Fynn Valley to our members? A wide ranging variety of techniques:

• Noticeboards – general and one for each section of the club
• Flyers to pick up
• Fixture List – updated regularly
• Noticeboards on the 1st & 10th tees
• Members’ emails
• Signs outside the bar, shop and car park
• A recorded telephone message service
• The members’ section on our web site
• A newsletter posted to them three times a year
• Twitter
• Facebook
• Word of mouth – our staff talking to them

Are you a member of a club? Which method of communication do you take the most notice of? Is the problem “information overload”? Do you have suggestions on how we could improve our methods?