SPORTS clubs on Sheppey are being encouraged to save money by applying for charitable status.The island's MP Derek Wyatt said tax relief and financial benefits are now available to community and amateur clubs.

He is urging island organisations to take advantage of the new measures. He will be writing to every eligible sports club to explain what is on offer, and will then organise a meeting with them, most likely to be held in July.

The MP, a former England rugby international player, and also a member of Parliament's culture, media and sport committee, said: "It's great. The clubs could save quite a lot of money. We need to make sure that they know about it and that their treasurers are aware there's a substantial amount of money involved."

The Chancellor's recent Budget offered charitable status to 110,000 clubs across the country. To qualify, clubs must have open membership policies, which means facilities should be genuinely open to anyone who wishes to use them.

They must be organised on an amateur basis and their main purpose must be to provide facilities for, and promote participation in, an eligible sport, such as football, rugby, cricket or golf.

Benefits include rate relief and tax exemption from fundraising and individual and corporate donations.

It also offers opportunities for employees to support a club through payroll giving.

Announcing the programme, Sports Minister Richard Caborn said: "This change will make a positive contribution to strengthening community sport.

"It will mean that hard earned cash will stay in sport. There is no doubt that sport has been at a disadvantage when it comes to tax and I am delighted that we are now able to set that right."

The Charity Commission has published guidance to clubs wishing to apply on its website, address www.charity-commission.gov.uk.