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

1. CASC Status The Financial Impact

2. Corporation tax The following organisations are liable to Corporation Tax: Members’ clubs, such as social clubs and holiday clubs Societies, such as friendly societies and provident societies Co-operatives Other unincorporated associations

3. What is taxable? The following are all subject to Corporation Tax: Bank interest received Capital gains Rent from huts/property (to non members) Profits from trading i.e. selling guide books, calendars or clothing (to non members)

4. What is taxable? (continued) The non members clause depends on a clubs constitution! So you may be liable to pay Corporation Tax on: Surpluses made on membership fees Surpluses from fundraising events Corporation tax is charged at 21% for the first £300,000 of profit. 20% from 1 April 2011.

5. Corporation tax – ‘small clubs’ HMRC treat 'small clubs' as dormant for Corporation Tax purposes. To qualify, both of the following must apply: 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 HMRC will review this at least every five years.

6. Corporation tax – ‘small clubs’(continued) Additionally, and for each year your club or organisation is treated as dormant, it must not have any: Trading losses available for offsetting against profits Chargeable gains or disposals Anticipated payments from which tax is deductible and payable to HMRC, i.e. PAYE

7. Corporation tax – ‘small clubs’(continued) Most clubs and unincorporated organisations with very small tax liabilities are covered by the exemptionexcept forthe following: Privately owned clubs run by the members as a commercial enterprise for personal profit Friendly societies

8. Casc benefits No Corporation Tax to pay on: Trading profits, if the turnover is no more than £30,000 per year Income from letting property, if the rent is no more than £20,000 per year Any interest received Any capital gains made

9. Casc benefits (continued) Plus: Mandatory 80% rates relief The ability to claim Gift Aid on voluntary donations

10. Gift aid Gift Aid is a scheme for Charities and CASC’s to maximise the value of donations received. It is worth 25p for every £1 donated There is a temporary “top up” of 3p for every £1 donated until 5 April 2011 As well as benefitting the CASC, if the donor pays higher rate tax they can claim tax relief on Gift Aid donations.

11. Gift aid – what you can claim? Can be claimed on voluntary donations only, but…… Sponsorships Events Membership fees Auctions/kit sales

12. The benefits nobody talks about! Access to the following financial/fundraising institutions: CAF Bank – Banking, insurance & investments CTT – Charities Technology Trust Charities Trust – eBay for charity/Everyclicketc Justgiving Rememberacharity.org Virgin Money Giving

13. The numbers

14. Useful links www.hmrc.gov.uk/casc/casc_guidance.htm www.hmrc.gov.uk/charities/casc/index.htm www.cascinfo.co.uk www.linkedin.com – CASC Forum group