Bowling a googly

I am the treasurer of my local cricket club and we are spending £125 000 plus VAT extending the clubhouse to increase the overall floor space by about 40%.

The extension will benefit both the playing side of the club (better changing rooms) and create a bigger and improved bar area for functions and after-match refreshment.

I was disappointed to learn that the building work is subject to 20% VAT. I would have thought the work would be exempt because we are a community amateur sports club (CASC).

But a committee member has instead suggested that we could become VAT registered to claim back some VAT on the building work.

Our three main income strands are from: playing fees annual playing subscriptions and junior coaching (£15 000 a year); bar and food sales (£20 000 a year); and an annual fundraising dinner at £5 000 of sales and £3...