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Most local groups are unlikely to have to consider payment of taxes of any kind. However, in some circumstances the following may apply. The minimum annual trading turnover figure above which a group must register for VAT is £58,000 in 2004/05. If you think your group should register for VAT, contact your local Customs and Excise office. If you occupy a building or land you may be liable to pay business rates to your local authority. Registered charities receive a 50% discount by law and many authorities use their discretion to reduce rates to charities to a minimum level. In any event it is always worth asking for a reduction. Groups which are registered charities may consider running a covenant scheme for their subscriptions or regular donations as a fundraising venture. This involves keeping full and accurate records of such income, a certain amount of form filling and registering with the Inland Revenue to claim back tax paid by the donor/member.If you have a volunteer willing to take this on you can reclaim 28% of this income if your members are tax payers so it may be worth it. Those groups which directly employ staff will have to register with the Inland Revenue for the operation of PAYE. In some areas there are organisations like CVS who undertake payroll operations for small groups at a reasonable charge. In some parts of the country there are community accounting services who can offer help to community groups, and who may be able to manage group accounts for a payment if you are running a large project that needs proper auditing. All content copyright © 1986-2008 BTCV Ltd. Registered charity No. 261009 |
