The Association of Taxation Technicians (ATT) has called for a widening of HMRC's Community Amateur Sports Clubs (CASC) scheme and warned that targeting local clubs is 'an inefficient use of resources' that 'will undermine the tremendous work that volunteers do' to keep their clubs alive.

The warning comes from ATT president Yvette Nunn, ahead of the Community Amateur Sports Clubs consultation closing date on 12 August.

Nunn welcomed the timely consultation on the eligibility rules for CASC registration but said that several sports clubs are still waiting to know whether their applications for CASC status will be accepted by HMRC.

'Many more are wrestling with decisions on whether to pay players and how this might impact CASC status. A comprehensive review, that includes all sports clubs, will give clarity to both HMRC and the clubs in question.

'The sporting legacy from last year's Olympic and Paralympic Games depends on greater participation in sport at a community level, in which local clubs play a vital role. The reality is that many of these clubs depend on the voluntary work of committee members. The last thing those committees need is a PAYE enquiry that results in an unexpected tax bill equal to two-thirds of the club's annual income. We are not talking about large unpaid tax liabilities owed on the salaries of Premier-league professional players. Most of the PAYE problems for amateur clubs will centre on very modest payments to part-time bar and ground staff. Focusing on soft targets, like these clubs, is an inefficient use of resources and will undermine the tremendous work that volunteers do to ensure their clubs continue to thrive,' said Nunn.

CASCs, introduced in 2002, provide a number of charity-type tax reliefs intended to support local amateur sports clubs. In order to qualify for these reliefs, clubs must meet certain conditions and register with HMRC. HMRC has launched a consultation seeking to amend these conditions for the purpose of better clarity.

The ATT is now pressing HMRC to consider its recommendations to hold a moratorium on PAYE reviews, consider how amateur sports clubs can ensure that they are tax-compliant and offer a facility to enable clubs to bring their tax affairs up to date and meet any tax liabilities on a realistic structured basis.

Nunn continued: 'By giving amateur clubs a chance to tidy up their tax affairs and, if appropriate, apply for CASC registration, they will be given the opportunity to plan their future on a more secure basis and thereby achieve the objective of encouraging greater participation in community sporting activities.'