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CASC Status - The financial impact
CASC Status - The financial impact
CASC Status - The financial impact
CASC Status - The financial impact
CASC Status - The financial impact
CASC Status - The financial impact
CASC Status - The financial impact
CASC Status - The financial impact
CASC Status - The financial impact
CASC Status - The financial impact
CASC Status - The financial impact
CASC Status - The financial impact
CASC Status - The financial impact
CASC Status - The financial impact
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CASC Status - The financial impact

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A presentation made at the BMC huts seminar spelling out the financial impact of attaining CASC status.

A presentation made at the BMC huts seminar spelling out the financial impact of attaining CASC status.

Published in: Economy & Finance
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  • 1. CASC Status<br />The Financial Impact<br />
  • 2. Corporation tax<br />The following organisations are liable to Corporation Tax:<br />Members’ clubs, such as social clubs and holiday clubs<br />Societies, such as friendly societies and provident societies<br />Co-operatives<br />Other unincorporated associations<br />
  • 3. What is taxable?<br />The following are all subject to Corporation Tax:<br />Bank interest received<br />Capital gains<br />Rent from huts/property (to non members)<br />Profits from trading i.e. selling guide books, calendars or clothing (to non members)<br />
  • 4. What is taxable? (continued)<br />The non members clause depends on a clubs constitution! So you may be liable to pay Corporation Tax on:<br />Surpluses made on membership fees<br />Surpluses from fundraising events<br />Corporation tax is charged at 21% for the first £300,000 of profit. 20% from 1 April 2011.<br />
  • 5. Corporation tax – ‘small clubs’<br />HMRC treat 'small clubs' as dormant for Corporation Tax purposes.<br />To qualify, both of the following must apply:<br />Your organisation's annual Corporation Tax liability must not be expected to exceed £100 <br />You run your club or organisation exclusively for the benefit of its members<br />HMRC will review this at least every five years. <br />
  • 6. Corporation tax – ‘small clubs’(continued)<br />Additionally, and for each year your club or organisation is treated as dormant, it must not have any:<br />Trading losses available for offsetting against profits<br />Chargeable gains or disposals<br />Anticipated payments from which tax is deductible and payable to HMRC, i.e. PAYE<br />
  • 7. Corporation tax – ‘small clubs’(continued)<br />Most clubs and unincorporated organisations with very small tax liabilities are covered by the exemptionexcept forthe following:<br />Privately owned clubs run by the members as a commercial enterprise for personal profit<br />Friendly societies<br />
  • 8. Casc benefits<br />No Corporation Tax to pay on:<br />Trading profits, if the turnover is no more than £30,000 per year<br />Income from letting property, if the rent is no more than £20,000 per year<br />Any interest received<br />Any capital gains made<br />
  • 9. Casc benefits (continued)<br />Plus:<br />Mandatory 80% rates relief<br />The ability to claim Gift Aid on voluntary donations<br />
  • 10. Gift aid<br />Gift Aid is a scheme for Charities and CASC’s to maximise the value of donations received.<br />It is worth 25p for every £1 donated<br />There is a temporary “top up” of 3p for every £1 donated until 5 April 2011<br />As well as benefitting the CASC, if the donor pays higher rate tax they can claim tax relief on Gift Aid donations.<br />
  • 11. Gift aid – what you can claim?<br />Can be claimed on voluntary donations only, but……<br />Sponsorships<br />Events<br />Membership fees<br />Auctions/kit sales<br />
  • 12. The benefits nobody talks about!<br />Access to the following financial/fundraising institutions:<br />CAF Bank – Banking, insurance & investments<br />CTT – Charities Technology Trust<br />Charities Trust – eBay for charity/Everyclicketc<br />Justgiving<br />Rememberacharity.org<br />Virgin Money Giving<br />
  • 13. The numbers<br />
  • 14. Useful links<br />www.hmrc.gov.uk/casc/casc_guidance.htm<br />www.hmrc.gov.uk/charities/casc/index.htm<br />www.cascinfo.co.uk<br />www.linkedin.com – CASC Forum group<br />

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