A local group of teachers who train other teachers in the skills of nursery education have been muddling along for a few years. The group does not have their own bank account or legal vehicle and income and expenses have been run through the bank account of a local nursery school - which has caused a number of issues, not least for the school, whose funding is being cut because the LA thinks that extra funding is part of the school's funding - which it isn't. The income involved is about £30k p.a. My interest in this is soley that a friend is the nursery school Finance Officer.
At the last meeting, one of the teachers involved suggested they start a Trust. My friend asked me what I thought. I don't like the Trust idea for administrative, cost and - I think - tax reasons but thought a Company Ltd by Guarantee would be a better vehicle.
I know this is ridiculous in some ways, (size of entity and giving help for free) but as a profession, I think we should help the community and as you will appreciate, paying for advice is disproportionately expensive for this outfit.
Anyone see any downsides to a Coy Ltd by Guarantee or is a Trust or some other vehicle the best way forward?
Replies (6)
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Co ltd by guarantee best route, Also Charity, possibly both
Does anyone get paid?
How does PAYE currently work?
Where does the income come from?
Trust just a load of trouble
Ignore all the other options
If a charity works out to be the best solution, you could always tell them that you will have to pass it on as it’s a bit specialist/outside of your experience/whatever other excuse springs to mind. It sounds like they will expect you to be doing this pro bono even though they are funded.
I'm all for helping out the community, and volunteer for different schemes and charities to that end.
But I don't follow your reasoning in this instance. Were they forced to operate as non-profit or was it a choice? Does the non-profit pay earnings to the staff who work for them? Then why can't they find the funds for an accountant who does work for them?