VAT Question

[drivin_me_nuts]

Quick VAT Quesion.

I run workshops where clients pay.

I am planning to run a number of free workshops. Is there any tax (particularly VAT) implication on running free workshops?



Cheers,

DMN

Edited to add, my business is VAT registered

Edited by drivin_me_nuts on Tuesday 2nd February 14:23

[Eric Mc]

As long as it's not classed as gifts or entertainment, you should be OK.

I presume you hope to generate some new business from this venture?

[mattdaniels]

What's 17.5% of £0 ?

[Eric Mc]

It can be a bit more complicated than that.

[drivin_me_nuts]

Eric Mc said:

As long as it's not classed as gifts or entertainment, you should be OK.

I presume you hope to generate some new business from this venture?

Yes and no. If new business came out of it then that's fine, but the reason behind them is that it gives me an opportunity to do the same thing for a group that I offer in a single client basis. Ideally I plan to run a small number in a year, but I don't want the tax man to land me with a bill when the intention is to do something for free through my business.

[Eric Mc]

Why for free?

Why not charge?

[drivin_me_nuts]

Eric Mc said:

Why for free?

Why not charge?

Because it's my businesses way of doing something useful for an audience that can really benefit from the services I provide and to an audience that cannot normally afford my fees. Other than doing it through a trust or charity is there another way to guarantee zero tax?

[Eric Mc]

Running through a charity doesn't guarantee zero tax anyway - certainly not on the VAT front.

If you want to do something for "the people" that is absolutely fine and very noble of you.

If you are not billing, you won't be raising VAT invoices.

Onviously, you will be incurring some expenditure ion running such a free service so those costs will be offset against your normal trading income - as long as you can show that the "free" service you are providing is part on part of your normal trading operation.

[sploosh]

If you are making no charge for this then you don't charge VAT

However, if you were accessing a grant to run free workshops then you would need to charge VAT on the value of the service.

http://www.hmrc.gov.uk/manuals/vensavmanual/VENSAV...

[drivin_me_nuts]

Thanks for the replies. There is no funding or grants involved in this, just something we want to do.

Cheers,

DMN