The annual amount is £148.20 and is £2.82 per week equivalent i.e. 52 weeks
I think appears that these are the only options:
1. To keep the current Ltd status and pay the normal CT. As it is limited by guarantee then the surplus is reinvested. The donations received to date are all taxable income.
2. Appears, that a Ltd company can apply to become a CIC. Again, CIC has no special CT exemption i.e. to pay the tax. But the benefit is that there are assurances to the donors, such as, asset lock, registering with CIC regulator, plus annual additional report filing with Companies House. However, having said that, "CIC’s profits are fully taxable unless it can be shown that the terms of the contract are such that, in tax law, the organisation does not amount to a taxable trade". Possibly, appears some argument with HMRC i.e. taxable trade or non taxable trade and hence potential CT exemption route.
3. Appears may not be able to convert the current Ltd company to a charity, but advantage of a charity is certain CT exemptions, but on the flip there are far more reporting requirements and the trustees in addition.
Conclusion: Pay the CT, think of CIC or to set up a new charity.
Am i right in the above ?
I take it they did not approve the draft or reply. However, you have the evidence of prior communication, completing the draft and sending for approval. Your working practice appears standard and chase for the money.
You should not filed the tax return without their approval. For them to approve they must have seen the return and possibly kept a copy of. For the former client if he wants another copy now then I am assuming you can charge for the admin. At worst case, the client always can get in touch with HMRC and request a copy.
They have suggested that individuals donating would not be happy if found out there is CT tax implication, plus if they can avoid CT tax then the additional money can be spent on activities.
For one of the recent clients, on the current year tax, I completed the section setting off loss against prior year profit and entered the bank details to pay into. Plus couple of weeks later I called HMRC and explained that have set off the loss against last years profit. HMRC transferred the amount to the bank account mentioned.
I think they just set up without thinking much on the structure. They believed that by providing evidence to HMRC i.e. articles, memorandum, bank statements etc HMRC will allow CT exemption. Also, appears they did not take any advice on this, just looked at other charitable organisation and thought they'll be ok too.
I've been going crazy over this issue too, as it won't let me login. However, I just realised that last time I logged into the gateway using a different browser, so i just went into that browser and tried to login and "hey" success. Appears HMRC own system remembers the browser information and you need to login via the same link.
Yes, thank you all.
I've had a go in trying to find a reason to claim travel costs in this specific case but appears cannot. So I accept.
I am sorry, but I need to explore travel costs a bit more
"Dr Samadian case where travel was disallowed because it was "regular and predictable" - though that said, Dr Samadian was working at the same place into perpetuity, so longer than 24 months".
My client has worked for 8 months in one place, then current year in another (10 months) and in a week leaving work for at least few month.
Appears travel costs can be claimed under itinerant ?