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Royal British Legion Club

Corp tax

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have taken on a british legion club client - limited company under the FCA

i'd assumed that they would have an exemption for mutal trading and only be taxed on non member income ......the previosu accountants however had the all income and profits being taxed, so just want to check we are on the right path

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By Paul Crowley
11th Dec 2020 14:39

Yes
Hope the prior accountant is insured

Usually 2 sets of accounts
The Legion proper and the club

In reality difficult to believe officers did not know this

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By I'msorryIhaven'taclue
11th Dec 2020 14:47

A bit outside the box, but could it be that the officers expected that the exempt activities would produce a loss?

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By Paul Crowley
11th Dec 2020 14:54

I no longer take on clubs of any kind

but the legion proper (charity) is usually different to the club bit

But that is based on only the few I have dealt with.

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By I'msorryIhaven'taclue
11th Dec 2020 15:45

Very wise. Charity begins at home!

I was musing that if the members' (charitable) arm was loss-making then that might be the reason behind it being chucked into the overall pot, rather than having separate accounts prepared.

Charity accounts put me in fond memory of when, as a first-year trainee, I got to sit in the partners' boardroom while the chairman of a large charitable sports and social club was walked through the accounts by not one but two of the senior partners. The chairman himself was not a client but an assistant bank manager who revelled in the attention; but a good many of the club's members were important clients, so ground coffee and best manners were the order of the day.

When it was time to sign, nobody had a pen for him, save for the cheap and leaky biros that were the firm's standard issue. Partners duly embarrassed, I was disptached to the stationery-mistress, who guarded pens as though her life depended on it. And as I was unable to produce an empty biro, the old girl refused me any issue.

My workaround was to nip out to WH Smith and buy a very expensive Parker which, signatures completed, I presented to the chairman to keep. Afterwards, I received a "well done" and a "nice touch" from the partners. But I'll never forget the look on the old girl's face when I presented her with my petty cash slip for a pen that must have matched her entire year's budget.

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Replying to I'msorryIhaven'taclue:
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By Paul Crowley
11th Dec 2020 15:59

Nice one
Exactly the same for a period of time when I was in articles. New pens locked away and only exchanged for deads
Could not get a green pen unless old pen was green

Most of us just bought our own

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Replying to I'msorryIhaven'taclue:
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By lionofludesch
11th Dec 2020 16:07

Great anecdote.

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By SouthCoastAcc
14th Dec 2020 10:02

I don't understand why were they locked away, were pens valuable back then?

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By Crouchy
11th Dec 2020 14:51

thanks should add its not limited by gaurantee, there are shares, but no clue as to who owns them

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By lionofludesch
11th Dec 2020 15:30

Crouchy wrote:

thanks should add its not limited by gaurantee, there are shares, but no clue as to who owns them

That in itself is a reason for passing the job to a more worthy accountant. Perhaps one you don't really like.

The shares will be held by some trustee who died donkey's years ago and nobody thought about doing the paperwork to transfer them.

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Replying to Crouchy:
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By Paul Crowley
12th Dec 2020 21:54

The client is the person who should be maintaining membership records. Had the similar position on a friendly soc a few years back when we used to do audits. Rules required at least x number of members. Dead members deemed to have ceased membership with, with the £1 share forfeited as per rules of the society. They eventually got some new members
It was also accepted as a charity by HMRC and ran a care home, and needed audit
You need to read society rules on membership, if you can get hold of a copy.

I was sacked because I gave an honest audit opinion(eight years later).

Within three years I started acting for the service charge company for the same building, once converted into flats and one of the flat owners who was renting out his flat

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By memyself-eye
11th Dec 2020 15:40

I was contacted by an outdoor bowls club some years ago - they were VAT registered when they didn't need to be and thought the very reasonable fees they were being charged by a local accountant were outrageous - I turned them down - so a member did the next set for peanuts then quit. Second time they contacted me I said 'no thanks' again. Best decision ever.
These are the sort of people 'run' these not for profit/charity/club organisations...

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