Membership fees including a donation to a third-party charity

[MDB]

Hi all, this forum looks amazing, all help gratefully appreciated - thanks.

My question is: if a limited company charges an individual a subscription for a membership package, part of which is used directly to fund a donation to a third-party charity on behalf of the individual, must the company collect VAT on that part of the membership fee?

E.g. Imagine limited company A charges individuals £20/year subscription, of which £10 is donated directly to charity B and £10 is kept by company A (and e.g. put towards the costs of supplying the individual with other services and making a profit). Does company A charge £4 VAT or £2 VAT (or something else entirely)? (Company A and charity B are entirely unrelated.)

Thanks!

[pawncob]

It depends on what the company is charging for. surely the way round it is to make membership dependent on a donation to the charity.