BRCA Rulings on prizes?

[c0sie]

Is there a general rule that covers prizes at BRCA Sanctioned events (i.e are they allowed)

Or does each section determine that themselves?

Many thanks.

[mardavehq]

Hi Mate
don't quote me but i think all prizes are ok except for Money (cash)
Chris

[Jim Spencer]

The short answer is Yes.

Its on page 11 of your handbook, Part 24 of the Constitution.

Basics are:-
No prize with an intrinsic value of more than £50, and no cash prizes.

Hope this helps

Jim

[Stuart Cann]

Does anyone know if Carpet Wars is BRCA sanctioned then? They have cash prizes for their 2 day cup.

[Neil McRae]

any historic reason why this is the case?

[Jim Spencer]

It was to do with the Inland revenue, many moons ago. Basically awards in sports competetions below £50 in value - and not cash, we're exempt from income tax, over that you had to declare them and pay tax on the intrinsic value.
(You are (were?) liable to pay Tax on cash awards of any amount)

Must admit nobody has queried if that figure's still the case, may well have been updated (but knowing the Tax man, not by much :rolleyes: ) I'll check and if its changed i'll propose an update for the AGM.

[Mark Christopher]

is that why the big prizes end up in a raffle?

[c0sie]

Going on from Marks post, would a raffle be exempt?

[Neil McRae]

It was to do with the Inland revenue, many moons ago. Basically awards in sports competetions below £50 in value - and not cash, we're exempt from income tax, over that you had to declare them and pay tax on the intrinsic value.
(You are (were?) liable to pay Tax on cash awards of any amount)

Must admit nobody has queried if that figure's still the case, may well have been updated (but knowing the Tax man, not by much :rolleyes: ) I'll check and if its changed i'll propose an update for the AGM.

Jim,
I think you may have a point there, atleast for cash prizes for Pro drivers (as its seen that they are earning this as part of a profession, I'm pretty sure pro golfers etc have to pay tax etc). I have a friend at the Inland Revenue Commisioners office I will ask also.

Regards,
Neil.

[Jim Spencer]

Hi

Yes raffles which are closed to a venue are exempt.

i.e. If you're at an event, where the raffle is being done on the day the tickets are normally the cloakroom things you can buy in a stationers, yes?
This is fine.

If you have a look at a Major raffle, the sort of thing where tickets are sold weeks in advance, or over a wide area these have a licence number printed on the ticket, where the organisers of it have applied to the relevant authorities for permission to hold it.

Both sorts can have big prizes, its just one of the many weird and wonderful systems our tax collectors have come up with over the years to ensure nobody escapes paying they're dues.

[Neil McRae]

Yeah its pretty much as I said and has been like that for a while and they have no plans to change it :D You can give cash prizes but the reciever becomes responsible for declaring it on their tax return.

One thing he said to me was that one area they were looking though particularly in local activities like this, was "in-kind sponsorship". Where people get free or discounted goods for representing that vendor. In their view thats income (kind of like company health care etc) and they believe they are losing revenue in a number of ways. 1: VAT, 2: Income from the sponsor and 3: income from receiver, their main focus being athletics (which seems nuts to me considering 2012) Something to keep an eye out for perhaps.

Regards,
Neil.

[BigBadBond]

I think you will find that most sponsored drivers ( apart from A drivers ! but thats different) actually Pay VAT for there goods even with the discount!! The Shop/distributer just makes little if no money on the deal! Mr Taxman still gets his bite!! As ever!

"Still waiting for the lung capacity checks so we can be taxed on the amount of air we breathe"

[Neil McRae]

yah well you know the taxman - always on the take :D

[Mike Haswell]

I have just been reading about HMRC's search engine, known as the Web Robot, which is targeting on-line businesses and those trading on E-Bay which are not registered or paying vat.

[BigBob]

I have just been reading about HMRC's search engine, known as the Web Robot, which is targeting on-line businesses and those trading on E-Bay which are not registered or paying vat.

Can't say I'm surprised that ebay has caught the taxman's eye.

IIRC, if ebay was a country it would have the 7th largest economy in the world :eek:

[Barry_Hughes]

Does anyone know if Carpet Wars is BRCA sanctioned then? They have cash prizes for their 2 day cup.

Or more importantly does your BRCA insurance cover you at a meeting that gives a cash prize like this?

[Jim Spencer]

Hi

Yup no problem with anything like that, they could give a prize the size of a lottery win and it still wouldn't effect the insurance...

The Tax man on the other hand might get a bit miffed!