[cma-l] PRS, PPL and VAT

[Alex Gray, Two Lochs Radio]

I can’t see any reason why PPL and PRS shouldn’t be including VAT in their bills – they are making charges for a VAT-liable business service. It’s not their choice, it’s the law.

 

But many stations overlook the fact that they may save money by registering for VAT even if they are well below the threshold for compulsory registration. That’s especially so if you have recently bought a lot of gear to set up or refurbish, or are about to do so. We initially registered mainly to recover VAT on our initial set up costs 13 years ago, and haven’t come anywhere near the threshold for our entire 13 years of broadcasting since, but have still found it advantageous to be registered.

 

If most of your income comes from grants, (on which there is no input tax), and your members subs and donations are exempt/zero-rated, then you can easily find yourself a net recipient of VAT refunds, or at least reduce your expenses considerably, especially in quarters when you have large purchases.

 

If your main outgoings are rent and or salaries, rather than goods and services, then you are less likely to benefit from voluntary VAT registration, but it’s definitely worth doing the sums and deciding. You can always deregister at will.

 

Alex

 

From: cma-l-bounces at mailman.commedia.org.uk [mailto:cma-l-bounces at mailman.commedia.org.uk] On Behalf Of Betar Bangla Ltd
Sent: 05 January 2017 15:59
To: The Community Media Association Discussion List <cma-l at mailman.commedia.org.uk>
Subject: Re: [cma-l] PRS, PPL and VAT

 

hi everybody,

Fantasy radio should know that a lot of community radio stations are not registered for VAT due to low income. Fantasy radio might be earning a huge amount of money, and they are registered, but what about us as we can not claim back what we would pay them as VAT. PRS and PPL should removeed VAT from their invoices and also they should refund all VAT they charged to all community radio station till today.

I beleive that CMA should take initiative to solve these with PRS and PPL in the interest of Community radio stations.

thanks

 

 

On 5 January 2017 at 14:44, fantasy office <office at fantasyradio.co.uk <mailto:office at fantasyradio.co.uk> > wrote:

 

Good afternoon.

I have tried to resist joining in - but I feel I must.

I am very happy with the PRS PPL deal - it means, with a simple payment, we can play all the music in the world on our station, with no logging, returns, or other encumberance. It's a damn good deal. 80 percent of our output is music and I'm very thankful for that. It brings us an audience, without which, we may as well all go home.

Community radio is a business - we need to pay for things so we have something to sell. It's as plain as that.
Electricity, broadband, phone lines, Ofcom licence, PRS and PPL are the lifeblood of what we do. Of course, if you can get a better deal somewhere, that's good news. 

And what's the problem with VAT? Anybody with any business sense knows that if you have to pay VAT and you're registered, YOU CLAIM IT BACK. This applies to telephone, fuel, equipment and more.

When we started our first RSLs, then applied for our community licence, we just looked at the rules, did the costings and worked it out from there. It really is that simple. We took the decision and we made it work.

Please, let's concentrate on producing great radio for our listeners and it will all work out fine. Don't try to reinvent the wheel - it may not be perfect but it works pretty well.

Peace and love in 2017 to all our colleagues in CR.

Phil Dawson
FANTASY RADIO 97FM
Devizes,
Wiltshire.


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