Even if you are registered as a charity,
there can always be certain trading activities
carried out which fall outside of the allowed
exemptions. When this is the case, taxable
and VATable trading may take place. This can
have a significant impact on the profitability
of these activities, and other unexpected
consequences for the school. This is an area
in which HMC&R are taking an increasing
interest, so it’s important to ensure
you are aware of any and all possible trading
activities to avoid any unexpected tax bills.
Figures for income and expenditure for this
activity will need preparing and we can of
course take care of this. We will also offer
advice on how the activities should be carried
on, for example it may be beneficial to set
up a subsidiary company for this sort of trading.
We have recently advised schools embarking
on major capital projects of the likely VAT
implications and possible mitigation. This
is a highly complex area that continues to
evolve and develop, and will continue to be
closely monitored by HMC&R.
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