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Reenactment group and tax

Posted: Wed Aug 05, 2015 10:02 am
by Oafc_rob
Hi,

I've got a question for people who run reenactment groups, what do you do in terms of tax man?

As far as I can tell a lot of groups do nothing apart from keeping a record of income and outgoings. However, I was wondering if you need to be declared to the tax man as a charity or are you covered by this being a hobby.

So for example a group does a show and charges £300 it costs all members £100 to get to the show all receipts are kept. So £200 goes into a community bank account which is later used to buy a new tent for the group to improve the displays for next time. So the bank balance becomes £0 so no real profit but the profit has been changed to an asset technically for the group.

Any help & advice would be appreciated.

Re: Reenactment group and tax

Posted: Thu Aug 06, 2015 12:30 pm
by John Waller
HMRC really would not be interested in something so small but consult their website if you feel you must. Corporation Tax on zero profit is zero.

Re: Reenactment group and tax

Posted: Thu Aug 06, 2015 3:05 pm
by Merlon.
Technically all reenactment groups (as Unincorporated Associations) are liable to Corporation Tax on any profits they make.

However HMRC will ignore you provided:-
•your organisation’s annual Corporation Tax liability must not be expected to exceed £100
•you run your club or organisation exclusively for the benefit of its members


Most reenactment groups cannot regard themselves as Charities as they are unlikely to satisfy the conditions set by The Charity Commission

Re: Reenactment group and tax

Posted: Thu Aug 06, 2015 5:33 pm
by Simon Atford
Merlon. wrote:

Most reenactment groups cannot regard themselves as Charities as they are unlikely to satisfy the conditions set by The Charity Commission


We looked at getting charitable status once but decided against pursuing it. Most re-enactment groups are similar to local drama groups etc, and they don't have to pay tax.

Re: Reenactment group and tax

Posted: Thu Aug 06, 2015 8:03 pm
by acecat999
All that money you received from events that you cant put against expenses.. write it off again the capital purchases.


Tax man actually owes you money

Re: Reenactment group and tax

Posted: Thu Aug 06, 2015 8:08 pm
by Merlon.
Most re-enactment groups are similar to local drama groups etc, and they don't have to pay tax.

That will only because they are below the de minimis limit. Reenactment groups fall within the definition of Unincorporated Associations

(Looooong time working in HMRC)

Re: Reenactment group and tax

Posted: Thu Aug 13, 2015 9:28 pm
by Mark Griffin
What really annoys the HMRC is not keeping accurate records. if you can prove you've spent it and are acting appropriately to your status, fine, even if you haven't declared and made returns. Getting found out and sheepishly claiming ignorance with the addition of no booking keeping can hurt.