Friends Groups and VAT: Any One Any Experience?

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Permalink Reply by AndrewAW1 on April 13, 2016 at 14:22

It's a little more complex, some payments get zero rate tax but not everything.

https://www.gov.uk/vat-charities/what-qualifies-for-relief

Is the Friends group a registered charity?

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Permalink Reply by JulieB on April 13, 2016 at 14:23

I believe you have to have a certain level of income to become VAT registered - sorry I can't remember the minimum level.

I ran a local School's PSA, a registered charity, and because our income (fund raising) wasn't at this lower level we couldn't be VAT registered and couldn't claim back VAT on purchases.

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Permalink Reply by Justin Guest on April 13, 2016 at 15:12

Thanks for that guys. No it is not VAT registered (if that we were that large, I think it is about £80k+ a year revenue) and no, it is not a registered charity. Getting registered is I believe a tough piece of work in itself.

I have had a look and see nothing about Friends groups being exempt sadly.

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Permalink Reply by JulieB on April 13, 2016 at 16:29

I managed to get our PSA registered as a charity and it wasn't easy, luckily I had help from a few parents who have more charity experience than me and I had template forms to use for Schools - I imagine there might be similar templates for 'Friends of' organisations.

You need to raise a minimum of £5,000 per year to register as a charity.

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Permalink Reply by AndrewAW1 on April 13, 2016 at 15:49

You don't necessarily need to be VAT registered to reclaim the VAT on the specific categories of expenditure linked. Although I'd suspect the only category that would apply would be advertising.

You do need to be registered with the charity commission as a charity though.

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Permalink Reply by Angela on April 13, 2016 at 17:09

Is the Friends Group for a park or green space? If so, Friends of Haringey Parks might be able to advise you

(like Julie, I only know about PSAs)

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Permalink Reply by Justin Guest on April 13, 2016 at 18:49

No, I am looking at the Friends of the Harringay passage, I am their 'Treasurer'...

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