Social club not paying tax

[Whiter123]

Help me tax gurus!

I've recently been made treasurer of my local social club and been working away trying to get us back in the black, which we now are. All good.

What's got me worried though is that I don't think we're registered and paying tax contributions for the bar staff. It's probably been that way for 50 years but in my role I don't think it's something I can ignore. Staff are being paid cash, rather than into bank accounts and hence nothing is being paid to HMRC.

Now I'd like to call them up but am worried that if I do so it could put my club in real danger of going under. If HMRC turn round and ask for several years worth of tax we could be in a world of pain. What I'd like to ask please is for advice on what I should do, if there's likely to be any kind of amnesty from HMRC and any other opinions really.

I'm new to all this and would greatly appreciate any thoughts. Thank you

[pawncob]

If you're in practice, you have no choice but to reveal what you know to the authorities. (Hopefully the Committee didn't put you in such an invidious position)

As Treasurer, an officer of the club, you're liable for any infringements of the law committed by the club, if you don't seek to remedy them. A disclosure to HMRC is recommended. It's possible that there is no tax/NIC liability if the "employees" don't have other income, but this would be unlikely for ALL employees.

In any event you should contact the previous Treasurer and confirm the position, report the matter to the Committee and inform them that they must approach HMRC and explain the position. As employers, they are liable for all fines and penalties, and the club may not be in a position to indemnify them.

If they won't co-operate-RESIGN ASAP.

[Whiter123]

Thank you. This confirms what I thought I should do. I'm worried it may be a huge bill or fine that would force us to close but as you say I can't see we've got any other choice. We have to do the right thing and I'll spell this out to the rest of the committee.