Funding challenges are not new to charities, although their scale and complexity have undoubtedly intensified. Local authority contracts that fail to cover core costs,

For charities, expanding your activities to scale impact and generate sustainable revenue streams is often crucial. However, navigating the complexities of trading activities within

When can you trade in the charity and when do you need a subsidiary, how this should work and the rules around charity rates

Many charities provide paid for services or goods and with organisations increasingly looking to diversify their sources of income, it is important to be

Advantages of a separate trading subsidiary Can protect the charity from tax liability Clarifies objectives for each part of organisation Limited liability status for

If the activities you are planning do not fall within the exemptions and the activities are not fulfilling the primary purpose of the charity,

Primary purpose trading is trade carried out by a charity in the course of carrying out its main objects and is exempt from income

Trading is the exchange of goods or services for a fee. For tax, the law does not specifically define trading, but case law has

Many charities provide a service in return for a fee and this may amount to trading. This guide explains when trading is permitted within

If your trading subsidiary has made losses since the previous year end you are required by the Companies Act to take extra steps before

As the trading company is a separate legal entity it must register for VAT if its taxable supplies exceed the VAT registration threshold. Any

Charities only retain tax relief if their income is spent on their charitable purposes and tax exemptions are not available for non-charitable expenditure. Non-charitable

The Gift Aid distribution of profits from a trading subsidiary to the parent charity can only be made from distributable profits. This means that

So that a subsidiary does not pay tax, it must shed its taxable profits by tax-effective transfer to the charity by Gift Aid. However,

Welcome to your March e-newsletter, your go-to source for the latest insights, events and articles from the charity and social purpose finance sector.

Engaging with supports, members or patrons can be a great way for charities to both engage with their beneficiaries and generate additional funds. However

This session will focus on guiding you through the requirements of the change to Section 23 of Financial Reporting Standard (FRS) 102 on Revenue

Whether you are looking to run new events or reviewing existing ones, it is important to understand the key tax consideration around fundraising events.