I have been approached by a client whose company's activity is to empower and encourage a particular group in UK to be more actively involved in British media and politics. It focuses on media monitoring and improving the political literacy of the said group.
The company does not supply any goods or provide any other services to businesses or individuals. The company class itself as a not for profit making organisation albeit it has not been setup as either LBG or is registered with Charities Commission.
The company's activities are funded by "contributions" from general public as well as directors and there is no service to be provided in return for these contributions to any of the individual/orgnanisation contributing towards the cause.
The points I need to clarify are are as follows
1. Is the income generated by the company subject to corporation tax? The contributions are nothing more than donations. There is an underlying expectation by the "donors" that the company will continue to provide work in line with its objectives.
2. If the income is subject to corporation tax than would this also be VATable?
Any advise provided shall be received with immense appreciation.