A football club is set for a refund after Wokingham Borough Council confirmed it had continued to charge VAT on multiple sports pitch bookings after a government-issued exemption.
James Wyper, secretary of Ashridge Park Football Club, spoke at last week’s full council meeting.
He said his club hires football pitches at Cantley Park and Montague Park from Wokingham Borough Council.
He said: “Prior to March 2023, Wokingham Borough Council charged VAT on all sports pitch bookings, but an exemption on bookings in blocks of 10 or more meant that we did not pay, and the council did not collect, VAT on most bookings.
“In March 2023, HMRC ruled that bookings were not liable for VAT.”
He claimed that Wokingham Borough Council had continued to charge users at the VAT-inclusive rate, keeping the benefit of the tax cut for themselves.
He added: “Because the exemption that we used to take advantage of now longer applies, we are paying thousands more than last year for the same facilities.”
Replying to his question, Cllr Imogen Shepherd-Dubey, responsible for the finance portfolio at Wokingham Borough Council, acknowledged the public statement made by HMRC regarding the VAT exemption for multiple pitch bookings.
She said: “Despite the statement, we were aware of further reviews being undertaken and that further guidance would be issued once that was complete at the time when this was highlighted.
“Following external advice, we were advised to hold off from making any changes until the full and longer term position was clarified.
“Our experience shows that sometimes government bodies issue statements or policies that are not ready to be implemented.
“Things often change before we actually get to see the details required to act on.”
She confirmed that the subject of sports pitches has now appeared on the very latest advice.
“We are currently working through all of the detailed changes required in order to align how our fees are classified for VAT.
“I can assure you that you and Ashridge Park Football Club, that the council has, at no point, increased its own element of the fees.
“Now that we finally have the full confirmed understanding, we are working to view how much VAT has been paid to HMRC, and we will recover any overcharge payments.”
She said that those claims will be used to repay any organisations that were overcharged.
“We are working to do this as quickly as possible, and we’ll be in touch with all organisations affected in due course.
She was unable to provide a timeline for the repayments.
Wokingham Borough Council was unable to confirm the amounts involved, or whether other sports clubs could also expect a refund.
