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Where Taxpayers and Advisers Meet

Membership fees including a donation to a third-party charity

MDB
Posts:3
Joined:Sun Sep 18, 2016 4:59 pm
Membership fees including a donation to a third-party charity

Postby MDB » Sun Sep 18, 2016 5:26 pm

Hi all, this forum looks amazing, thanks in advance for your help.

My question is: If a limited company charges individuals a subscription for a membership package, part of which is directly used to make a donation to a third-party charity on the individuals' behalfs, must the company collect VAT on that portion of the membership subscription fee?

E.g. limited company A charges individuals £20/year for membership, of which £10 is donated to charity B (with the remaining £10 used to fund other services to the individuals and to create profit). Does company A charge £2 VAT or £4 VAT?

Thanks!

MDB
Posts:3
Joined:Sun Sep 18, 2016 4:59 pm

Re: Membership fees including a donation to a third-party charity

Postby MDB » Sun Sep 18, 2016 5:27 pm

Oops, double post, sorry.


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