I am Treasurer for a small scout group. We are currently constructing a new building which is intended to be used for a relevant charitable purpose (as a scout hut) and as similar to a village hall.
We have been issuing certificates to this effect and obtaining zero-rating on construction services.
We have been approached by a business about renting the building at a time when it would not be in use by us. If we entered into this arrangement it would take us over the de minimis limit for business use and a self supply charge would become due on the building.
The self supply would take us over the VAT registration threshold but we would immediately fall back way below the deregistration threshold with no forseeable likelihood of exceeding again.
What are our chances of obtaining exception from registration under these circumstances given that our registration would result in revenue for HMRC? The plan is to ask for some sort of indication in advance as it will materially affect our decision as to whether to take the business as a tenant. Is there any wording we should use that would improve our case? And would the HMRC response in advance be binding on them if the circumstances arose exactly as we had told them?
Any help you are able to give would be much appreciated.
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