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<DIV><FONT face=Arial>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.
</FONT><FONT face=Arial>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).</DIV>
<DIV> </DIV></FONT>
<DIV><FONT face=Arial>
<DIV>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!</DIV>
<DIV><BR>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).</FONT></DIV></DIV>
<DIV><FONT face=Arial></FONT> </DIV>
<DIV><FONT face=Arial>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.</FONT></DIV><FONT face=Arial>
<DIV> </DIV>
<DIV>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.</DIV>
<DIV> </DIV>
<DIV>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).</DIV>
<DIV> </DIV>
<DIV>Salaries, rents, donations and grants received are also happily outside the
scope of VAT.</DIV>
<DIV> </DIV>
<DIV>Alex</FONT></DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; PADDING-LEFT: 5px; PADDING-RIGHT: 0px; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="FONT: 10pt arial; BACKGROUND: #e4e4e4; font-color: black"><B>From:</B>
<A title=transplanfm@hotmail.com href="mailto:transplanfm@hotmail.com">Ian
Hickling</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A title=tamar.millen@commedia.org.uk
href="mailto:tamar.millen@commedia.org.uk">tamar.millen@commedia.org.uk</A> ;
<A title=cma-l@mailman.commedia.org.uk
href="mailto:cma-l@mailman.commedia.org.uk">cma-l@mailman.commedia.org.uk</A>
</DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Wednesday, June 23, 2010 1:17
PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> [cma-l] Emergency Budget
2010</DIV>
<DIV><BR></DIV> <BR>The most sensible and logical thing - which seems to
escape a lot of CR organisations - is to become VAT
registered.</BLOCKQUOTE></BODY></HTML>