|
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 2004/05
As in previous seasons, I am writing to confirm the level of funding which has been approved by the RFU for season 2004/05 for Clubs participating in The English Clubs Rugby Union Championship at levels 5 and below.
Revenue Funding
For season 2004/05 the maximum amounts payable under revenue funding together with comparative totals for season 2003/04 are as follows:
Level 5 2004/05 £4,550 2003/04 £4,450
Level 6 2004/05 £3,600 2003/04 £3,500
Level 7 2004/05 £2,450 2003/04 £2,300
Level 8 and below 2004/05 £1,700 2003/04 £1,300
These payments include £100 per club payable to all levels irrespective of the Club Annual Return Questionnaire results, a result of the RFU Official Licensee Hospitality scheme introduced last season. All of the above amounts will be paid under conditional funding as described below.
It should be noted in addition to the funding set out above there has been a substantial increase in funding to the Capital Fund (see below). It has also been the intention to assist the greatest number of Clubs (within an overall budget) and to make funding levels less dependent upon the league levels by granting the largest increase in funding to those Clubs at the lowest league levels,
Please note that, as in previous seasons, the actual funding received by each club is dependent upon the Club Annual Return Questionnaire responses; the above amounts represent the maximum achievable at each level. The minimum guaranteed payments per club, provided that the club has both paid its premiums under the RFU mandatory insurance scheme (as noted below as ‘Players’ Accident Insurance’) and submitted the questionnaire, are as follows:
Level 5 £3,150
Level 6 £2,400
Level 7 £1,600
Level 8 and below £1,000
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.
It should be noted that the funding paid to Level 5 Clubs will be made net of a deduction of £330 required to fund the cost of referees at this level, as agreed by the Finance & Funding Standing Committee; however, clubs at this level will no longer be invoiced for referees for league matches.
The amounts will be paid by direct debit to the bank account of individual clubs in two instalments, as follows:
• by 31st October 2004 50% of the maximum funding
• by 31st March 2005 the balance of the total earned under Conditional Funding
You are reminded that no amounts will be paid until the club has paid the premiums due under the RFU mandatory insurance scheme (as noted below as ‘Players’ Accident Insurance’).
In addition to the above, Clubs will receive assistance for travel 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.
Capital Funding
All clubs at level 5 and below are eligible to apply to the Capital Fund, administered by the Rugby Football Foundation, for interest free loans and grants for capital improvement projects. Further details on this scheme are available on the RFU website in the Community Rugby Section, or in writing by contacting the Rugby Football Foundation Company Secretary, Rugby House, Rugby Road, Twickenham, TW1 1DS.
Players’ Accident Insurance
The RFU will continue to make a contribution to each Club’s senior team insurance of £50 per team. As in season 2003/2004, for those Clubs fielding junior and mini teams, the mandatory playing insurance premiums for all such teams for season 2004/2005 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:
Powergen Powergen Powergen
Cup Int Cup Junior Vase
1st Payment Total Amount Total Amount
£ £ £
Qualifying Round Losers 2,500 - -
Preliminary Round Losers 3,000 - -
First Round Losers 3,500 410 -
Second Round Losers 4,400 540 380
Third Round Losers 5,500 730 520
Fourth Round Losers 6,600 920 660
Fifth Round Losers 7,700 1,140 830
Sixth Round Losers 8,800 n/a 1,110
Quarter-Final n/a 1,390 1,390
Semi-Final n/a 1,770 1,730
Finalists n/a 2,150 2,080
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 Mileage Amount
150 + £200 350 + £600
200 + £300 400 + £800
250 + £400 450 + £900
300 + £500 500 + £1,000
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.
VAT
The RFU 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, Customs have 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 Terry Gray, Club Accountant, Rugby Football Union, Rugby House, Twickenham TW1 1DS.
Regards
Graham Hancock
Finance Manager
Tel: 020 8831 6538
Fax: 020 8892 7159
Email: grahamhancock@rfu.com
Cc RFU Finance Director
Chairman Management Board
Chairman Finance and Funding Standing Committee
Chairman & Secretary Divisional Organising Committees
Chairman Competitions Sub Committee
Chairman Community Rugby Standing Committee
RFU Chief Executive
Community Rugby and Operations Director
Council Members
RFU Club Accountant
|
