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, Accountant
Category: Tax
Satisfied Customers: 3814
Type Your Tax Question Here...
bigduckontax is online now

I am a member of a woman's organization and the

Resolved Question:

I am a member of a woman's organization and the treasurer left suddenly so they asked me to take over their finances. We hold 4 fundraising events every year, and at the end of the financial year (June), we pass all proceeds (after expenses) on to our chosen charities. In the past they have just divided up what was left in the charity account among the 4 charities. But they seemed to have ignored VAT. Is that because it would all be exempt? How do we handle VAT for these proceeds? Can we ignore the VAT when we're figuring out the amounts that would go to each charity?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Firstly, does your fund raising activities turnover exceed 83K in any one year? If they do not then your charity can forget about VAT. If they do then please come back to me for further guidance.
Customer: replied 1 year ago.
No it's only about £20k fund raising but we do social activities (not for profit), for the members.
Expert:  bigduckontax replied 1 year ago.
but presumably not to a 60K odd level?
Customer: replied 1 year ago.
Well, we do about £18k income for membership dues, another £8k income for advertising in our annual guide. Then another £40k or so passes through our accounts for payment of the activities and tours we organize. So yes, probably just about up to that level.The club have been filing a VAT return quarterly, but they've pretty much been ignoring VAT for the fundraisers.
Expert:  bigduckontax replied 1 year ago.
I make that an aggregate of 66k, well below the VAT Turnover threshold. My advice to you would be to de-register the charity and then forget about VAT altogether. I do hope that you have found my advice of assistance.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your excellent support.

Related Tax Questions