How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3356
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I administer a "not community group. It does

Customer Question

I administer a "not for profit" community group. It does incur certain costs or expenses
such as Home as Office and office materials. How do i inform HMRC of this scenario. I have been administering the group for over 5 years ,the group is registered with Local authorities and a number of "government departments" ,national audit office; environment agency and others. The group consists of a list of founder members only. None political with free membership.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I'm Keith and happy to help you with your question.

I am of the opinion that the axctivities of your community group will be classified as 'Trading Between Members' and thus outside the scope of UK taxation. For internal purposes it should maintain books of account if only to protect those members with fiscal responsibilities. The one 'ni**er in the woodpile' so to speak is any interest earned from a bank or other deposit taker which might be assessable for tax, but if tax has been deducted at source you probably do not need to worry about that either..

I would advise you to write to your local HMRC office for guidance. I am sure that they will come to the same conclusion. Even HMRC does not wish to process returns which yeild no Revenue; it's an exercise in financial futility.

I do hope I have shown you a way forward to clear the air for all your members.

Customer: replied 2 years ago.

my request is for information which will enable me to set expenses from my admin of the group against my income tax liability

Expert:  bigduckontax replied 2 years ago.

With respect, I would consider that most improper and suspect that HMRC would also look ascance upon such an arrangement. If the group has no income to absorb these costs then its expenses should be shared wholly and severally amongst the members and each should have to meet his share.

I am so sorry to have to rain on your parade.

Customer: replied 2 years ago.

To repeat and clarify , there is no monetary involvement between myself or the group , only my personal expenses in the running of the group which is home for office and office expense no money gain ,only the ability to claim for the administration of the" not for profit community group ". I am the sole actual member running the group.

Customer: replied 2 years ago.

informing the tax office of the situation is what i am looking for . Is there a set procedure for this

Expert:  bigduckontax replied 2 years ago.

I would suggest to you that these personal expenses which I fully understand should be reimbursed from the group's income if it has any or by individual members 'chipping in' their share.

Now if the group formally appoint you as their aministrator then you might be able to offset these expenses against your self employment income. Hewever they would not be allowable against a normal paid employment as the are not wholly, necessarily and exclusively incurred.

Just write an explanatory letter to the local HMRC office to request guidance.

bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3356
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions