General tax implications of activity

[colduv]

My daughter-in-law opened a bank account for fundraising for a charitable purpose that she was raising money for. The money was for paying for training for herself in infant swim survival.
Recently she has been putting this training into practice by training youngsters in survival methods and has been charging parents a fee for this training and of course has swimming pool costs to pay.
I would like to find out the implications on income tax as it stands with trading income, trading purchases and fundraising gifts and whether now is the time to form a charitable Incorporated organisation for these activities.
Any advice would be grateful received
Best regards
Tim Aspinall

[bd6759]

What was the charitable purpose? Your daughter raised funds to acquire qualifications that she now utilises to generate income. Your daughter is carrying on a trade.

[colduv]

She is not taking any personal payment for the services she provides. Customer payments pay for running expenses and any additional towards providing free scholarship places to infants of financially underpriveliged families

[colduv]

Can anyone give their opinion on the above please.
She is not carrying out a trade for her benefit, the question is how would the inland revenue view this?
Thanks
Tim

[bd6759]

Your daughter in law is carrying on trade. What she chooses to do with the profits is an entirely different matter and not one that affects the nature of the activity.

[colduv]

Thank you for your input.

So she would be paying income tax as a sole trader on any profit over her personal allowances.
If to avoid this she achieved registered Charity status then the Charity will not be liable for income tax ?
Thanks again
Tim