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Basic ct600 help for no profit LTD company

How to reduce reported profit

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Hi,

I have been asked to help with submit the ct600 and annual accounts for a non profit organisation that is trading as a limited company.

Its main sources of income have been

a) donations / sponsorship from corporations
b) donations from individuals
c) sales of t shirts and tickets for event

3 questions i need help with!

1) Am i correct in thinking that ticke and t shirt sales should be reported as turnover? Would the other donations fall under 'other income'?

2) If we received a large cash donation from a corporate do we have to pay tax on this? We have used this money to run the organisation, but if there is any money left over at the end of the accounting period does tax need to be paid?

3) If we get a corporate donation near the end of the financial year how do i not pay tax on the whole amount straight away?! Can i offset costs against this in future years?

I know these are very basic questions but any help appreciated.

Kind regards,

 

Replies (5)

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By coolmanwithbeard
18th Feb 2020 12:26

are you a registered charity?

do your donors get anything for their money? adverts, lobbying, any goods?

Lots of questions - you may be better seeking some professional help to ensure you get this right.

M
(not that people on here are not professional - it's just this needs more info than a simple question can achieve)

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By Accountant A
18th Feb 2020 12:31

moman wrote:

I have been asked to help with submit the ct600 and annual accounts for a non profit organisation that is trading as a limited company.

You can't help them if you don't know what you are doing and trying to muddle through is just as likely to create issues as it is to solve them.

The people who set up and run the company should recognise that they have legal responsibilities. If they don't understand these, then they need to pay someone to assist them. Doing that now will be a lot cheaper than trying to sort it out when it's all gone wrong.

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By moman
18th Feb 2020 12:34

Thanks for the replies - yes I think we probably need to get an accountant.

We are not a charity at the moment - but hope to be in the future. We do some lobying work as well as hold events, but the donations really just help with day to day expenses such as IT etc.

Thanks!

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Replying to moman:
RLI
By lionofludesch
18th Feb 2020 14:39

If you achieve the lofty ambition of becoming a charity, you need to be a CIO and not a CoHo registered limited company.

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Replying to moman:
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By JoF
18th Feb 2020 15:46

[quote=moman]

Thanks for the replies - yes I think we probably need to get an accountant.

Wise move

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