Dear all<br><br>Just as a point of clarification re VAT registration:<br><br>It makes no difference at all whether you are a CLG, CIC, charity or charitable company. If the sources of your income fall within the scope of VAT, and the total of those sources in scope exceed the VAT threshold, currently £70,000, then you MUST register for VAT. Whether income is within the scope depends on its nature. So an out and out grant will not be, a service level agreement may or may not be (even if for education/training) depending on the wording and whether the funding body treats it as within the scope, ads and sponsorship etc almost certainly will be. Any of the above organisation types can register voluntarily for VAT but it really is not worth the extra accounting hassle unless you are quite close to the threshold (look on the HMRC website for the rules on VAT partial exemption calculations requirements). Partial exemption is a minefield!<br>
<br>Hope that helps<br><br>Jaqui<br><br><div class="gmail_quote">On 5 February 2011 18:57, Ian Hickling <span dir="ltr"><<a href="mailto:transplanfm@hotmail.com">transplanfm@hotmail.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin: 0pt 0pt 0pt 0.8ex; border-left: 1px solid rgb(204, 204, 204); padding-left: 1ex;">
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As I have said many times - the obvious solution is to run three businesses concurrently:<br>
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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>
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It's sensible business practice - not rocket science.<br>
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To lose that much VAT by default is just plain stupid - sorry!<br>
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From: <a href="mailto:office@ccr-fm.co.uk" target="_blank">office@ccr-fm.co.uk</a><br>To: <a href="mailto:info@a-bc.co.uk" target="_blank">info@a-bc.co.uk</a>; <a href="mailto:cma-l@commedia.org.uk" target="_blank">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><font size="2" color="navy" face="Arial"><span style="font-family: Arial; color: navy; font-size: 10pt;">Glyn n’ all</span></font></p>
<p><font size="2" color="navy" face="Arial"><span style="font-family: Arial; color: navy; font-size: 10pt;"> </span></font></p>
<p><font size="2" color="navy" face="Arial"><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><font size="2" color="navy" face="Arial"><span style="font-family: Arial; color: navy; font-size: 10pt;"> </span></font></p>
<p><font size="2" color="navy" face="Arial"><span style="font-family: Arial; color: navy; font-size: 10pt;">Regards</span></font></p>
<p><font size="2" color="navy" face="Arial"><span style="font-family: Arial; color: navy; font-size: 10pt;"> </span></font></p>
<p><font size="2" color="navy" face="Arial"><span style="font-family: Arial; color: navy; font-size: 10pt;">Nick</span></font></p>
<p><font size="2" color="navy" face="Arial"><span style="font-family: Arial; color: navy; font-size: 10pt;"> </span></font></p>
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<p><b><font size="2" face="Tahoma"><span style="font-family: Tahoma; font-size: 10pt; font-weight: bold;" lang="EN-US">From:</span></font></b><font size="2" face="Tahoma"><span style="font-family: Tahoma; font-size: 10pt;" lang="EN-US"> <a href="mailto:glyn.m.roylance@googlemail.com" target="_blank">glyn.m.roylance@googlemail.com</a> [mailto:<a href="mailto:glyn.m.roylance@googlemail.com" target="_blank">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>
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<p><font size="3" face="Times New Roman"><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>
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<p><font size="3" face="Times New Roman"><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>
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<p><font size="3" face="Times New Roman"><span style="font-size: 12pt;">Glyn Roylance</span></font></p></div>
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<p><font size="3" face="Times New Roman"><span style="font-size: 12pt;">GLOSS FM.org</span></font></p></div>
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<p style="margin-bottom: 12pt;"><font size="3" face="Times New Roman"><span style="font-size: 12pt;"> </span></font></p>
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<p><font size="3" face="Times New Roman"><span style="font-size: 12pt;">On 4 February 2011 18:16, Office - ccr-fm <<a href="mailto:office@ccr-fm.co.uk" target="_blank">office@ccr-fm.co.uk</a>> wrote:</span></font></p>
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<p><font size="2" face="Arial"><span style="font-family: Arial; font-size: 10pt;">Dear All</span></font></p>
<p><font size="2" face="Arial"><span style="font-family: Arial; font-size: 10pt;"> </span></font></p>
<p><font size="2" face="Arial"><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><font size="2" face="Arial"><span style="font-family: Arial; font-size: 10pt;"> </span></font></p>
<p><font size="2" face="Arial"><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><font size="2" face="Arial"><span style="font-family: Arial; font-size: 10pt;"> </span></font></p>
<p><font size="2" face="Arial"><span style="font-family: Arial; font-size: 10pt;">What about Sheffield and of course the CMA ?</span></font></p>
<p><font size="2" face="Arial"><span style="font-family: Arial; font-size: 10pt;"> </span></font></p>
<p><font size="2" face="Arial"><span style="font-family: Arial; font-size: 10pt;">Many thanks</span></font></p>
<p><font size="2" face="Arial"><span style="font-family: Arial; font-size: 10pt;"> </span></font></p>
<p><font size="2" face="Arial"><span style="font-family: Arial; font-size: 10pt;">Regards</span></font></p>
<p><font size="2" face="Arial"><span style="font-family: Arial; font-size: 10pt;"> </span></font></p>
<p><font size="2" face="Arial"><span style="font-family: Arial; font-size: 10pt;">Nick</span></font></p></div></div>
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<br></blockquote></div><br><br clear="all"><br>-- <br>Jaqui Devereux<br>Director, Community Media Association<br><br><br>