NJE/KM

12 September, 2003

To: Secretaries and Treasurers of Clubs at Levels 5 and below of

The English Clubs Rugby Union Championship

Dear Club Colleague

RFU FINANCIAL SUPPORT FOR SEASON 2003/2004

As in previous seasons, I am writing to confirm the level of funding which has been approved by the RFU for season 2003/2004 for Clubs participating in The English Clubs Rugby Union Championship at levels 5 and below.

Revenue Funding

For season 2003/04 there will be two components of revenue funding, Conditional Funding and a Profit Share. The maximum amounts payable for 2003/04 together with comparative totals for season 2002/03 are as follows:-

-------------------2003/04 -----------------

2002/03

Conditional Funding

Profit Share

Total

Level 5

Level 6

Level 7

Levels 8 and below

4,150

3,200

2,000

1,000

300

4,450

3,500

2,300

1,300

4,275

3,200

2,100

1,100

There will be a guaranteed minimum payment per club for each level, irrespective of the entitlement earned under conditional funding, provided that the club has both paid its premiums under the RFU mandatory insurance scheme and submitted the club annual return questionnaire via the RFU website. The minimum payments per club (in total) by league level are as follows:

Level 5 £3,080

Level 6 £2,300

Level 7 £1,500

Level 8 and below £700

Funds will be earned under Conditional Funding by meeting specific criteria, as in season 2002/03. Information regarding the Conditional Funding criteria will be collected via the website as part of the completion of the Club Annual Return questionnaire and assessed by your Constituent Body.

The amounts will be paid by direct debit to the bank account of individual clubs in two instalments, as follows:

i) in week commencing 27 October, 50% of the total maximum revenue funding will be paid.

ii) in week commencing 5 April 2004 following the review of each club’s information by the Constituent Body, the balance will be paid, representing the total earned under Conditional Funding plus the Profit Share, less the amount previously paid under (i) above.

You are reminded that no amounts will be paid until the club has both paid the premiums due under the RFU mandatory insurance scheme and completed the Club Annual Return questionnaire via the RFU website.

In addition to the above, Clubs will receive assistance for travel distances in excess of 150 miles, according to the table below under “Long Distance Travel Allowance”. The amounts payable will be calculated by each regional organising committee and will be paid automatically at the beginning of the season.

Players Accident Insurance

The RFU will continue to make a contribution to each Club’s senior team insurance at the increased amount of £50.00 per team. As in season 2002/2003, for those Clubs fielding junior and mini teams, the mandatory playing insurance premiums for all such teams for season 2003/2004 will be paid entirely by the RFU. Further details of this arrangement, together with the necessary insurance information forms, have been issued to all Clubs.

Knock-out Competitions

In addition to the above sums, Clubs may be eligible for a share of the competition funds from RFU Knock-out Competitions (ie the Powergen Cup, the Powergen Intermediate Cup and the Powergen Junior Vase), the value of which depends on a Club’s progression in the relevant competitions. For the Powergen Cup these payments will be made in two instalments: the first payment will be made on a Club’s exit from the Competition and represents a payment on account; the second payment will be made, depending on availability of funds, once the match accounts for the semi finals and final have been finalised. For the Powergen Intermediate Cup and Powergen Junior Vase, one single payment will be made on a Club’s exit from the Competition. The payments will be as follows:-

You are reminded that payments from the Knock-Out Competitions’ funds are in respect of a taxable supply. All clubs must submit an invoice, with VAT added for clubs which are VAT registered, before payments can be made. In addition to the above, Clubs will receive assistance for the knockout cups for travel distances in excess of 150 miles in accordance with the table below.

Long Distance Travel Allowance

In addition to the Revenue and Knock-Out Competitions payments, there are travel allowance payments for all competitions. Please refer to the relevant competitions’ regulations for details regarding eligibility for these amounts. Travel allowance payments are available for round trip travel distances in excess of 150 miles, according to the following table.

Mileage Amount

Corporation Tax

All payments to Clubs by the RFU are subject to Corporation Tax in the hands of each Club. These payments should be included as trading income in the tax computation of your Club against which you may, of course, claim trading expenses or, where appropriate, trading losses brought forward. You should be aware that the RFU is required to advise the Inland Revenue of all payments made to each Club.

The RFU’s VAT Officer has confirmed that the payments in support of league rugby and payments to alleviate the costs of long distance travel are outside the scope of VAT. However, the VAT Officer has ruled that payments in respect of Knock-out Competitions will be subject to VAT and the appropriate VAT invoicing system has been established.

Please ensure that a copy of this Circular is passed to your Club Treasurer as soon as possible. A copy of this letter is also available on the RFU website. If you have any queries relating to this letter then please write to Graham Hancock, Finance Manager, Rugby Football Union, Rugby House, Twickenham TW1 1DS.

RFU FINANCIAL SUPPORT 2003/2004 by Nick Eastwood