Vat question for a charity

[Welshbeef]

Ok so here is the situation

Is good friend is a treasurer of a Rugby club which is a registered charity - we occasionally give away a small % of beer to members as a gesture of goodwill - can we reclaim the VAT on this ? (I'm assuming no)


Next if the club buys 100 polo shirts can we reclaim the VAT?

[steve2]

I believe if the polo shirts have the name of the club on them, then yes.
No idea about the beer though

[Welshbeef]

Just had a text with further info.....

The problem is that the club is 2 entities. The rugby club and a social club, for historic reasons. The social club is vat registered and I'm not sure if it is classed as a charity or just the rugby part. Will look into it. But what about the polo shirt question, any thoughts? I'm meeting a vat woman next week and want it to be reasonably kosher!

[Ozzie Osmond]

I'm confused. IIRC,

1. Just because you're a charity doesn't mean you are exempt from VAT.

2. If your organisation is registered for VAT then the normal rules apply for inputs/outputs.

[Countdown]

Is it actually a charity or a CASC (Community Amateur Sports Club) ? Different rules apply.

[MEC]

Countdown said:

Is it actually a charity or a CASC (Community Amateur Sports Club) ? Different rules apply.

Not for VAT

[Welshbeef]

Countdown said:

Is it actually a charity or a CASC (Community Amateur Sports Club) ? Different rules apply.

I'll ask the question.

[Countdown]

MEC said:

Countdown said:

Is it actually a charity or a CASC (Community Amateur Sports Club) ? Different rules apply.

Not for VAT

Charities are exempt from VAT for certain things which CASCs aren't. I agree that the differences might be irrelevant in this case but its still useful clarifying whether or not the CASC is a charity.

[Countdown]

I didn't realise there were 2 parts to the question.

Re: beer consumed by members - no, VAT cannot be reclaimed. In fact the purchase cost of the free beer shouldn't be included in the cost of sales. None of the expense is allowable.

[Eric Mc]

Is the rugby club itself registered for charity?

Is the question you originally asked about the activities of the rugby club itself?

[Welshbeef]

Ok one update it is the Rugby Social club who have bought the beer and polo shirts

[Eric Mc]

Is the Rugby Social Club a charity?

Is the Rugby Social Club a separate entity to the Rugby Club itself?

[Welshbeef]

Eric Mc said:

Is the Rugby Social Club a charity?

Is the Rugby Social Club a separate entity to the Rugby Club itself?

No it is not and yes it is.

I think what they need to do is disband the social club and make the whole lot one entity and a charity.

[Countdown]

So what kind of entity is the Social Club? CASC? LtdCo? Does it file accounts or pay tax?

I'm also not sure what the benefit of merging it with the charity would be (unless it' currently paying tax or business rates)

[Eric Mc]

Social Clubs are often deliberately kept separate from the main entity so as to ensure that the two activities don't get muddled up. Often, there is a VAT driver behind keeping the two activities separate - although HMRC can sometimes query if they really are.