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Very Small Non Profit Making Organisation Status

Very Small Non Profit Making Organisation Status

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Hi All,

I have been approached by a non-profit making organisation to prepare an independant examination of their accounts. They make about £10k t/o and around £3k net profit which is invested back into the organistion. They are basically a community group who raise funds for a specific community event, record expenses incurred for that event and the surplus is used for following events.

The organisation is not registered as a charity or company and nothing official has been published. Is it OK for organisations such as this to exist? I would have thought that some "official" status would be needed.

Your comments?

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By WhichTyler
10th Sep 2015 13:17

Soundslike

they should register as a charity as income is >£5k. If I were you, I would ask to see the constitution or other governing document before going further to see if it sheds any light.

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PJ
By paulgrca.net
10th Sep 2015 13:29

It's

an Unincorporated Association David.

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By WhichTyler
10th Sep 2015 18:53

And as...
... Unincorporated Associations are liable for corporation tax on profits from their trading, and as yours seems to be trading profitably, there may be some tax to pay

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By AndersonAccountancy
11th Sep 2015 13:10

Thanks...

guys - is as I thought. I guess they just created something to do this event but have never had the proper advice.

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