[cma-l] Emergency Budget 2010

[Two Lochs Radio]

I'd reiterate what Ian says about the value of registering for VAT. We saved thousands during our set up period by being VAT-registered, and it has continued to be of long term benefit overall. The paperwork is minimal, especially if you use a small accounts software package such as Quickboks (also highly recommended!), and HMCE are very prompt at making any VAT refunds due (in my experience the money is in the bank within 10 days of submitting the quartelry return).

There's also a curious hidden benefit in that it disciplines you (/your treasurer) to make sure your books are fully up to date at least every quarter! It might sound silly, but with so much to be done it is easy to slip into stuffing everything into a cardboard box as something to be done later... until one day in the next financial year the paperwork hits the fan!

If you're below the compulsory threshold, the only thing you have to do is demonstrate to HMCE that you are operating a legitimate trading business (which if you are selling advert slots etc, you are).

Even better, if your turnover is below the VAT threshold, there is nothing to stop you registering for the setup period when you will be a net recipient of VAT refunds, and then deregistering at a time of your choosing if you foresee the ongoing balance swinging the other way.

The main downside is having to charge small local organizations VAT on advertising/sponsorship bills.If they are non-registered. As they can't reclaim, this effectively adds to the price of your sponsorship/advertising sales to them. But for big customers, government, local authority etc and charities, it makes no difference.

It's also sometimes worth declaring major fundraising events as VAT-exempt  - this is allowed for specific identifiable fundraising events (with various conditions), so avoids the need, for example, to charge VAT on tickets (but of course equally you can't then reclaim any VAT spent on expenses of the event except for items being resold at zero-rate).

Salaries, rents, donations and grants received are also happily outside the scope of VAT.

Alex
  ----- Original Message ----- 
  From: Ian Hickling 
  To: tamar.millen at commedia.org.uk ; cma-l at mailman.commedia.org.uk 
  Sent: Wednesday, June 23, 2010 1:17 PM
  Subject: [cma-l] Emergency Budget 2010


   
  The most sensible and logical thing - which seems to escape a lot of CR organisations - is to become VAT registered.
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