Is your sports club a VAT-registered business? Does it have (or is it approaching?) a taxable turnover which is over the VAT threshold? If so, did you know that there are new requirements for the way you keep your records/submit your tax returns as of 1st April 2019?
From this date, you will need to use the government’s Making Tax Digital service to keep all of your records digitally and you will need to use software to submit your VAT returns.
This is just the beginning of a shakeup of the way taxes are recorded/submitted. The only tax that Making Tax Digital will affect until April 2020 is VAT. The government are then expected to roll the changes out elsewhere from 2020.
How does Coacha help?
We’ve already had a few clubs get in touch asking if Coacha can help them become ‘Tax-compliant’ by April. It’s like the GDPR deadline all over again!
We think the most important thing to get across to users is that Coacha is not a piece of accountancy software and therefore using Coacha alone will not make you ‘tax-compliant’.
We’re a piece of club management software that helps you to run, manage and organise your club and its finances. From an accountancy and business processes point of view, Coacha acts as an interface that links to your Stripe account. We don’t specifically perform transfer of finances directly to the HMRC.
In fact, finding software that provides both club management tools and is a fully blown accountancy package is hard… From our research it would seem that no other membership management software platforms offer accountancy as part of their software across the whole industry. Club management and accountancy are completely separate and have specific unique needs.
If you were to ever find a piece of software that does both let us know, as we imagine it would be complicated to use, not to mention expensive.
However, Coacha can help. And it more ways than one.
1. All financial info must automatically filter into your digital tax account.
2. You must submit at least once per quarter.
3. Submissions need to be filed using software. So, this needs to be an application which is linked to your digital tax account.
Now it’s time for the good news, if you run your finances through Coacha, you’re already part-way there because we use Stripe! And Stripe integrates with systems that filter your finances into your digital tax account.
The missing link between Stripe and the filtration of your finances into your digital tax account is a piece of accountancy software.
So essentially the process you’ll need to undertake is as follows:
1. Set up finances in Coacha which will be taken by Stripe
2. These are automatically managed and reported in Stripe
3. Connect your Stripe account to accountancy software
4. Easily make submissions into your digital tax account
Some accountancy software that we’re aware of that already integrate with Stripe are Xero, QuickBooks and Sage. Any of these will help you keep on top of your organisation’s accounting and bookkeeping needs.
What if I have an accountant?
If you have an accountant, we’re sure they’ll already have everything in hand and will usually submit your VAT return/yearend reports for you. But just by using Coacha and Stripe, you’re already making life easier for them. This is because you’ve allowed a clear, concise and accurate record of your finances to be created, all in the same format.
In fact, we spoke to one of our newer users this week after they’d met with their accountant. They told us, “My accountant absolutely loves the fact I’ve chosen Coacha as my new system because it makes her life so easy!”.
As always, we’re trying to make life easier for you. Even though we can’t directly help with the implementation of your finances into your digital tax account, we can point you in the direction we would go ourselves. And if you have any questions that spring to mind, you know where we are.
The legal stuff
The content of this article is intended to provide a general guide to the subject matter and is not to be regarded as a substitute for consultation with a financial specialist who can advise you with a focus on your specific circumstance. Specialist advice should be sought about your specific circumstances.