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New start-up - Can cust. claim tax back?

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Good morning,

I am currently researching my target market, building packages for various corporate customers I have in mind.

I want to sell a fantastic new high-tech experience to the corporate market, targetting Team-Leaders and management personnel who have received some kind of recognition award for their efforts. I won't go into the details, but just for an example for one package I have in mind: an employer who wants to gift a team-leader for a job well done can hire my 'mobile' (COVID defined) business as a team-building/entertainment event/gift. The team-leader can then gift 5 team members from their team to go with them, hopefully, chosen by performance rather than favourites.

Can the company hiring my business receive some kind of tax relief? The business idea I have is to help reinforce good work and boost team morale, as well as provide an opportunity for teams to increase their team-building skills, and to create a happy memory between them. In this particular package, it will only allow a maximum of 6 people.

Also:

The business idea started as a charity idea for terminally ill people. After realising I could not finance such a thing, I decided to look into starting a small business that could help finance the charity side. If my business was also a charity, is there some way for customers in the corporate market to receive tax relief for paying for my service? What if the gift package not only included the service we provide, but the opportunity to pay for the service by donating the cost for the service to our charity? If that makes sense...

My ultimate goal is to have a business that can support my charity side (hospices), as well as grow into something bigger.

Hope someone can help. Thanks in advance.

 

Replies (7)

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By SXGuy
29th Sep 2020 07:35

It will probably come down to how much it costs per person, and whether it attracts a bik or not.

Unfortunately, the lack of info, for obvious reasons, is going to give you little answers.

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Replying to SXGuy:
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By John.Hunter
29th Sep 2020 07:38

Thank you for taking the time to reply.

I am new to starting a business. I am not planning to complete a business plan for at least 6-12 months so I am trying to learn as much as I can now to help identify my target customer. I apologise for the lack of information.

I will look into BIK.

Thanks again

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By WhichTyler
29th Sep 2020 07:58

The requirements and risks around trading by charities are complex. I suggest that the best thing is to start running a business and make donations to charity when it makes a profit. Building the charity in at the beginning is no benefit to anyone including the customer

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Replying to WhichTyler:
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By John.Hunter
29th Sep 2020 08:08

Thank you for the advice. I did think to not start the charity until there was growth in the business. I guess the option to donate for the service is out of the window, for now at least.

I have some ideas to help Hospices raise funds through streaming/recording interviews and activities, allowing viewers to donate for potential treatment or the hospice themselves. But like you said, it makes it far too complicated for the early stages of the business.

Thanks again

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Replying to WhichTyler:
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By WhichTyler
29th Sep 2020 08:40

By the way. I am not trying to squash your admirabl intentions, just trying to make sure your effort is as effective as possible. Trading (especially as a startup with no direct link to the charitable activity) is much riskier than almost any of the alternative ways of raising funds

Lots of ideas for individuals & corporates here: https://www.hospiceuk.org/support-us

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Replying to WhichTyler:
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By John.Hunter
29th Sep 2020 09:13

That's very helpful, thank you!

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By Duggimon
29th Sep 2020 11:56

Performance based rewards given to employees are generally taxable on the employee as income, unless the value is less than £50.

There may be ways to restructure your proposed business plan to work around this issue, which will be a serious issue for most of your target market, but that will require a more detailed consultation than you'll get on an internet forum.

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