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A CLG/Charity *can* register for VAT and depending on activity may<br>
be able to reclaim some or all input tax.<br>
<br>
Education and training are tricky areas, but not impossible. If you are
<br>
making substantial capital purchases in a CLG/Charity there are
legitimate ways<br>
to organise this so that the VAT can be recouped.<br>
<br>
It depends on what the items are used for *in the VAT year* in which
they<br>
are purchased. Last time I dealt with a VAT registration for such an org<br>
(which *was* accepted and able to reclaim VAT) there appeared to be a<br>
certain amount of flex and discretion and interpretation. Depending
what the<br>
first answer is it may be as well to stick or twist ..<br>
<br>
Ask a friendly charity accountant for 10 minutes' advice.<br>
<br>
Chris P<br>
WFM<br>
<br>
Ian Hickling wrote:
<blockquote cite="midBAY136-W98DB93C457CE03496F09FADE80@phx.gbl"
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Well - no - which is why I wrote it that way.<br>
The CIC works exactly as does a Limited Company (but is not entitled to
style itself "Limited") and is run within its Articles (and Memoranda)
by a Board of Directors - not as a club or association with Members
and a Constitution.<br>
Because it is not entitled to make a profit it will not now be accepted
by HMR&C for VAT registration and hence cannot claim back Input Tax.<br>
That is why the commercial limited company is required to be a separate
trading unit in order to be able to make unrestricted profits, reclaim
VAT and feed funding back to the CIC.<br>
Corporation or any other Tax will only be paid on profits and
correctly-organised accounting will ensure that this is minimised.<br>
If properly set up, the whole system can be run on a few days a year by
one sensible (probably retired) person who does not have to be an
accountant but has basic mathematical skills and on an ordinary PC
with no special software and three simple spreadsheets.<br>
<br>
<hr id="stopSpelling">
To: <a class="moz-txt-link-abbreviated" href="mailto:transplanfm@hotmail.com">transplanfm@hotmail.com</a>; <a class="moz-txt-link-abbreviated" href="mailto:office@ccr-fm.co.uk">office@ccr-fm.co.uk</a>; <a class="moz-txt-link-abbreviated" href="mailto:info@a-bc.co.uk">info@a-bc.co.uk</a>;
<a class="moz-txt-link-abbreviated" href="mailto:cma-l@commedia.org.uk">cma-l@commedia.org.uk</a><br>
From: <a class="moz-txt-link-abbreviated" href="mailto:tlr@gairloch.co.uk">tlr@gairloch.co.uk</a><br>
Subject: Re: [cma-l] Charitable Status<br>
Date: Sun, 6 Feb 2011 00:10:44 +0000<br>
<br>
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1 & 3 can be combined in a company limited by guarantee with a
suitable constitution, which is in effect what most of us do, isn't it?
<br>
<br>
If you run part of the operation as a company returning profits it is
subject to Corporation Tax isn't it? <br>
<br>
Alex<br>
<br>
<div id="ecxhtc_header">----- Reply message -----<br>
From: "Ian Hickling" <a class="moz-txt-link-rfc2396E" href="mailto:transplanfm@hotmail.com"><transplanfm@hotmail.com></a><br>
Date: Sat, Feb 5, 2011 18:57<br>
Subject: [cma-l] Charitable Status<br>
To: <a class="moz-txt-link-rfc2396E" href="mailto:office@ccr-fm.co.uk">"office@ccr-fm.co.uk"</a> <a class="moz-txt-link-rfc2396E" href="mailto:office@ccr-fm.co.uk"><office@ccr-fm.co.uk></a>, "Glyn Gloss"
<a class="moz-txt-link-rfc2396E" href="mailto:info@a-bc.co.uk"><info@a-bc.co.uk></a>, "cma-l" <a class="moz-txt-link-rfc2396E" href="mailto:cma-l@commedia.org.uk"><cma-l@commedia.org.uk></a><br>
<br>
</div>
<br>
As I have said many times - the obvious solution is to run three
businesses concurrently:<br>
<br>
1 - The Community Radio station as a CIC which does not return a profit.<br>
2 - A Charitable arm which can accept charitable donations which does
not retrun a profit and feeds the station.<br>
3 - A commercial limited company which can return a profit from a wide
range of activities, is VAT-registered and feeds the station.<br>
<br>
It's sensible business practice - not rocket science.<br>
<br>
To lose that much VAT by default is just plain stupid - sorry!<br>
<br>
<hr id="ecxstopSpelling">
From: <a class="moz-txt-link-abbreviated" href="mailto:office@ccr-fm.co.uk">office@ccr-fm.co.uk</a><br>
To: <a class="moz-txt-link-abbreviated" href="mailto:info@a-bc.co.uk">info@a-bc.co.uk</a>; <a class="moz-txt-link-abbreviated" href="mailto:cma-l@commedia.org.uk">cma-l@commedia.org.uk</a><br>
Date: Sat, 5 Feb 2011 14:34:48 +0000<br>
Subject: Re: [cma-l] charity status<br>
<br>
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<p class="ecxMsoNormal"><font color="navy" face="Arial" size="2"><span
style="font-family: Arial; color: navy; font-size: 10pt;">Glyn n’ all</span></font></p>
<p class="ecxMsoNormal"><font color="navy" face="Arial" size="2"><span
style="font-family: Arial; color: navy; font-size: 10pt;"> </span></font></p>
<p class="ecxMsoNormal"><font color="navy" face="Arial" size="2"><span
style="font-family: Arial; color: navy; font-size: 10pt;">Thanks Glyn
…………. As I said …. It looks like everyone is fumbling around in the
dark. Either we can as a fraturnity / brotherhood or we can’t ……..
which is it …. ?? I dunno’?</span></font></p>
<p class="ecxMsoNormal"><font color="navy" face="Arial" size="2"><span
style="font-family: Arial; color: navy; font-size: 10pt;"> </span></font></p>
<p class="ecxMsoNormal"><font color="navy" face="Arial" size="2"><span
style="font-family: Arial; color: navy; font-size: 10pt;">Regards</span></font></p>
<p class="ecxMsoNormal"><font color="navy" face="Arial" size="2"><span
style="font-family: Arial; color: navy; font-size: 10pt;"> </span></font></p>
<p class="ecxMsoNormal"><font color="navy" face="Arial" size="2"><span
style="font-family: Arial; color: navy; font-size: 10pt;">Nick</span></font></p>
<p class="ecxMsoNormal"><font color="navy" face="Arial" size="2"><span
style="font-family: Arial; color: navy; font-size: 10pt;"> </span></font></p>
<div>
<div style="text-align: center;" class="ecxMsoNormal" align="center"><font
face="Times New Roman" size="3"><span style="font-size: 12pt;"
lang="EN-US">
<hr align="center" size="2" width="100%"></span></font></div>
<p class="ecxMsoNormal"><b><font face="Tahoma" size="2"><span
style="font-family: Tahoma; font-size: 10pt; font-weight: bold;"
lang="EN-US">From:</span></font></b><font face="Tahoma" size="2"><span
style="font-family: Tahoma; font-size: 10pt;" lang="EN-US">
<a class="moz-txt-link-abbreviated" href="mailto:glyn.m.roylance@googlemail.com">glyn.m.roylance@googlemail.com</a> [<a class="moz-txt-link-freetext" href="mailto:glyn.m.roylance@googlemail.com">mailto:glyn.m.roylance@googlemail.com</a>] <b><span
style="font-weight: bold;">On Behalf Of </span></b>Associated
Broadcast Consultants<br>
<b><span style="font-weight: bold;">Sent:</span></b> 04 February 2011
22:59<br>
<b><span style="font-weight: bold;">To:</span></b> Office - ccr-fm<br>
<b><span style="font-weight: bold;">Cc:</span></b> CMA-L<br>
<b><span style="font-weight: bold;">Subject:</span></b> Re: [cma-l]
charity status</span></font><span lang="EN-US"></span></p>
</div>
<p class="ecxMsoNormal"><font face="Times New Roman" size="3"><span
style="font-size: 12pt;"> </span></font></p>
<p class="ecxMsoNormal"><font face="Times New Roman" size="3"><span
style="font-size: 12pt;">Yes we had the same experience. Essentially
we discovered that a community radio station could not be a charity
unless it fulfilled one of a number of narrow categories . ie: if we
decided to be a religious radio station then bingo, but we did not want
to go that way.</span></font></p>
<div>
<p class="ecxMsoNormal"><font face="Times New Roman" size="3"><span
style="font-size: 12pt;"> </span></font></p>
</div>
<div>
<p class="ecxMsoNormal"><font face="Times New Roman" size="3"><span
style="font-size: 12pt;">Instead we went down the CIC route. It was
"sold" to us as being equivalent to being a charity, but from a recent
approach from Inland Revenue I think it might have some drawbacks
compared to being a charity (they seem to treat us like any other
ommercial Ltd company) - but I'm not an expert.</span></font></p>
</div>
<div>
<p class="ecxMsoNormal"><font face="Times New Roman" size="3"><span
style="font-size: 12pt;"> </span></font></p>
</div>
<div>
<p class="ecxMsoNormal"><font face="Times New Roman" size="3"><span
style="font-size: 12pt;">Glyn Roylance</span></font></p>
</div>
<div>
<p class="ecxMsoNormal"><font face="Times New Roman" size="3"><span
style="font-size: 12pt;">GLOSS FM.org</span></font></p>
</div>
<div>
<p style="margin-bottom: 12pt;" class="ecxMsoNormal"><font
face="Times New Roman" size="3"><span style="font-size: 12pt;"> </span></font></p>
<div>
<p class="ecxMsoNormal"><font face="Times New Roman" size="3"><span
style="font-size: 12pt;">On 4 February 2011 18:16, Office - ccr-fm <<a
href="mailto:office@ccr-fm.co.uk">office@ccr-fm.co.uk</a>> wrote:</span></font></p>
<div>
<div>
<p class="ecxMsoNormal"><font face="Arial" size="2"><span
style="font-family: Arial; font-size: 10pt;">Dear All</span></font></p>
<p class="ecxMsoNormal"><font face="Arial" size="2"><span
style="font-family: Arial; font-size: 10pt;"> </span></font></p>
<p class="ecxMsoNormal"><font face="Arial" size="2"><span
style="font-family: Arial; font-size: 10pt;">Just a quick enquiry
………………. Does anyone know how many Community Radio Stations in our
fraturnity/brotherhood are actually charities ?? I know that we
looked into it 7 years ago but the process was a complete nightmare.
Also, in 2004 I clearly remember that the Charities commision simply
had NO category for radio ….. it was almost as if they didn’t
understand it >?>? I think the key
to it and the crux of the matter was that we were technically ‘’all
over the place’’ in what we were providing ……… in otherwords, providing
a lot, but nothing specific !
almost ‘’a jack of all trades but master of none’’</span></font></p>
<p class="ecxMsoNormal"><font face="Arial" size="2"><span
style="font-family: Arial; font-size: 10pt;"> </span></font></p>
<p class="ecxMsoNormal"><font face="Arial" size="2"><span
style="font-family: Arial; font-size: 10pt;">Have any of you guys had
a similar experience ? I seem to recall that
there is a station on the south coast as a charity ??
plus Regen (near to us) in South Manchester who do run
Wythenshawe FM and ALL FM ……………… outside of that, I’m a bit clueless to
be honest ……. Any ideas ?</span></font></p>
<p class="ecxMsoNormal"><font face="Arial" size="2"><span
style="font-family: Arial; font-size: 10pt;"> </span></font></p>
<p class="ecxMsoNormal"><font face="Arial" size="2"><span
style="font-family: Arial; font-size: 10pt;">What about Sheffield and
of course the CMA ?</span></font></p>
<p class="ecxMsoNormal"><font face="Arial" size="2"><span
style="font-family: Arial; font-size: 10pt;"> </span></font></p>
<p class="ecxMsoNormal"><font face="Arial" size="2"><span
style="font-family: Arial; font-size: 10pt;">Many thanks</span></font></p>
<p class="ecxMsoNormal"><font face="Arial" size="2"><span
style="font-family: Arial; font-size: 10pt;"> </span></font></p>
<p class="ecxMsoNormal"><font face="Arial" size="2"><span
style="font-family: Arial; font-size: 10pt;">Regards</span></font></p>
<p class="ecxMsoNormal"><font face="Arial" size="2"><span
style="font-family: Arial; font-size: 10pt;"> </span></font></p>
<p class="ecxMsoNormal"><font face="Arial" size="2"><span
style="font-family: Arial; font-size: 10pt;">Nick</span></font></p>
</div>
</div>
<p style="margin-bottom: 12pt;" class="ecxMsoNormal"><font
face="Times New Roman" size="3"><span style="font-size: 12pt;"><br>
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</pre>
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