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.