What is the tax postion on groups/committee who organise events to raise money for their group or for charitable events.
I presume that if the organiser is a charity ( e.g. a church bazaar or NSPCC fund raiser) different rules would apply but what about a group, permanent or ad hoc but unincorporated ( a PTA for example, or or a one off charity concert).
Or what is the position re an Am Dram Society (or any other reguklar "event" society) where very often surplus funds kept for future contingencies
And does it make a difference if there is only one organiser (the best sort of committee!)
I seemed to have asked more than I was expecting to!
Patrick Carson
Patrick Carson
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Tax on events
Thank you Jane. I think the sites provided guve me all i needed to know
Patrick Carson
Unincorporated associations
is what these usually are i.e. liable to CT (in some cases, they might be a trust if specifically set up that way). Have a look at http://www.hmrc.gov.uk/ctsa/small-tax-liabilities.htm which deals with small amounts of bank interest etc.
Otherwise, have regard to the usual rules when considering if an activity is trading or not, and don't overlook the fact that some trading may be "mutual" i.e. entirely amongst members.
There is also an ESC C4 - see http://www.hmrc.gov.uk/manuals/bimmanual/bim24795.htm and also consider the pages before and after that.
In my experience, it used to be investment income which was the main issue but with the concession above about small amounts should take care of most cases. If the amateur dramatic society keeps a large amount on deposit then it may well need to register and to pay ct.