Restaurant charity evening and VAT

Restaurant charity evening and VAT

Didn't find your answer?

I act for a partnership that runs a small restaurant. They are shortly to hold a 'charity evening' where all profits made will be donated to a UK registered charity. Suppliers will be invited to donate food for free for the evening, staff will work for free, etc..

My clients are concerned that they will have to account for VAT on any monies taken during the evening, and will also possibly not get tax relief on the profits ultimately donated?

I would be interested to hear comments on how to best get around these issues?

Scrooge

Replies (1)

Please login or register to join the discussion.

avatar
By Abacjm
28th Oct 2004 23:43

Charity Restuarant Evening.
Scrooge,
It may sound too obvious, but could the retaurant not be CLOSED for trading for the evening in the accounting records and whatever is given to the charity treated as a charitable donation under Gift Aid? I assume the partnership is made up of individuals whpo pay tax.
Food costs NIL (Donated)
Staff costs NIL (Donated)
Donations by patrons £x
Donations to charity £x.
I am surprised to note that it is only the "profit" that you envisage donating. How do you arrive at that? Rather than the whole evenings proceeds.

Thanks (0)