I would love some help with this and hopefully I am at the right place.
I run a Scout Group in Folkstone Kent with an income of £8000 pa which is registered with the charity's commission, under our Scout Group we started a Shop to help raise much needed funds for our group in the first year we turned over £53000 and this year we are looking to turn over £120000 so we will need to register for VAT.
my questions is do we register the Scout Group or the Shop ?
All profits from the shop go to our group and its included in the figures we submit to the charity's commission.
take a look at http://www.hmrc.gov.uk/charities/vat/intro.htm#4 to see if you need to register.
Assuming that you do then it is my belief that the shop is a component of the charity rather than a seperate entity and that you would need to register the whole scout group. I cannot think of any case where separate components of a business would be considered seperate for VAT purposes.
However, really you need to discuss this with your charities accountant who should be able to offer much better guidance than myself.
All the best,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
