Ral­ly4wales state­ment...

Motor Sport News - - Rally News -

Ral­ly4wales have been work­ing ex­ten­sively to fi­nalise key de­tails of the roads self-re­pair scheme due to be im­ple­mented from Jan­uary 2017 for all motorsport in Wales that use the Welsh Govt. Forest Es­tate. By re­pair­ing the roads after ral­lies on be­half of the event or­gan­is­ers, the self-re­pair scheme cru­cially caps costs to or­gan­is­ers for at least three years, at the pre­vi­ous rates. In­fla­tion in­creases will be pegged at the pub­lished Govt. RPIJ rates.

Dis­cus­sions have been held with Na­tional Re­sources Wales, the mem­ber clubs of the WAMC, Wales’ re­gional as­so­ci­a­tion for rallying as well as the UK’S gov­ern­ing body, the MSA. Th­ese have con­cen­trated on fi­nal­is­ing a con­tract be­tween Ral­ly4wales and the event or­gan­is­ers. The MSA as gov­ern­ing body wish to have over­sight on be­half of their recog­nised or­gan­is­ing clubs that run events in Wales.

The treat­ment of Value Added Tax (VAT) charged on the road re­pair trans­ac­tions is im­por­tant. Pre­vi­ously, Nat­u­ral Re­sources Wales as landowner of the Welsh Gov­ern­ment Forest Es­tate was en­ti­tled to ex­empt VAT on charges for us­ing their roads.

Un­der this new ar­range­ment, Ral­ly4wales as a ser­vice provider, and not a landowner, must charge VAT on the road re­pair mileage charges. Th­ese main fixed charges, Pri­mary us­age £698.00, Sec­ondary us­age £414.00 and Recce Us­age £20.30 plus VAT, will ap­ply to all branches of motorsport where sim­i­lar ve­hi­cles use the main forest roads and do sim­i­lar dam­age.

Re­cently, Ral­ly4wales have ob­tained ex­pert spe­cial­ist ad­vice to as­sist the event or­gan­is­ing clubs to min­imise the over­all im­pact of the VAT charged. The VAT treat­ment el­e­ment is com­pli­cated, with non-profit clubs, if de­cid­ing to reg­is­ter for VAT, should ex­empt VAT on rally en­try fees and cer­tain qual­i­fy­ing costs may be re­claimed.

Or­gan­is­ers may be able to re­duce the im­pact of VAT charged, through their own club gov­er­nance and busi­ness ac­tiv­ity. The MSA has ac­cepted the Ral­ly4wales po­si­tion on VAT fol­low­ing dis­cus­sions, and it is noted that even in the ‘worst case sce­nario’ – this still rep­re­sents a sig­nif­i­cant re­duc­tion on pro­posed cost in­creases that the sport was fac­ing from 2017 on­wards in Wales.

Al­though the process has been com­plex with a great deal of work needed in a very short time win­dow and many chal­lenges have been over­come, both MSA and Ral­ly4wales are pleased that mat­ters are be­ing brought to a close, en­sur­ing that no 2017 events will be in jeop­ardy.

There are still much prac­ti­cal, lo­gis­tics and com­pli­ance work to be done be­fore the first event hands over to the re­pair teams in mid-fe­bru­ary. Ral­ly4wales is continuing its own close work­ing re­la­tion­ship with Nat­u­ral Re­sources Wales op­er­a­tional teams to com­plete th­ese within Jan­uary 2017.

Ral­ly4wales will act to re­pair road dam­age

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