Club enquiries

[Donkeychopper540]

We are members of a club that has some 140 members, all members pay a subscription annually, this covers the costs of running the club. Rent of the meeting place and guest speakers and such. We are thinking of setting up a competition and attract entries to it from outside the club membership. This is to help boost the clubs finances going forward. As i understand any income to the club from its members in subscriptions etc is not liable for any tax. However if we proceed and for arguments sake take £2000 in entry fees from non members and this money is paid directly to the club are we liable for any tax. I understand that the costs involved in running a competition may be used to offset any tax etc. We would like to know how we stand in this situation before we take it any further. If tax is liable at what percentage of the net profit is payable.

[pawncob]

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24220
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim24000