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Where Taxpayers and Advisers Meet

Do I need to register

graham01
Posts:2
Joined:Tue Nov 02, 2021 5:32 pm
Do I need to register

Postby graham01 » Tue Nov 02, 2021 5:59 pm

I run a small business where I accept online entries for athletic events (track & field, cross country, road races etc) on behalf of the event organisers, all of whom are eligible bodies as defined in notice 701/45.
Entries are accepted in return for the entry fee plus a small admin charge, which covers credit card handling costs, bank charges and internet costs, plus a small profit.
All entry fees are transferred to the relevant organisers in full, and I declare the total of the admin fees less costs to HMRC on my tax return.

My questions are:
Do I need to register for VAT if the total of the entry fees plus admin charges exceeds £85000?, or only if the admin charges exceed £85000 (not likely to happen!)
If I do need to register, on what do I need to account for VAT, and at what rate?

Thanks in anticipation

les35
Posts:625
Joined:Wed Aug 06, 2008 3:09 pm

Re: Do I need to register

Postby les35 » Wed Nov 03, 2021 9:47 am

Your turnover will be calculated based on the admin fee only if you are clearly acting as an Agent in arranging the entries. That will involve a consideration of your website and other online presence and the contract between you and the event organisers.
If there is little or no such wording, HMRC may assess you for VAT on the entire amount you receive; and you cannot be an eligible body of the purposes of the VAT exemption.

graham01
Posts:2
Joined:Tue Nov 02, 2021 5:32 pm

Re: Do I need to register

Postby graham01 » Sat Nov 06, 2021 10:41 am

Thanks Les35!

I appreciate that this is probably outside of the forum remit, but can you suggest any such appropriate wording?

les35
Posts:625
Joined:Wed Aug 06, 2008 3:09 pm

Re: Do I need to register

Postby les35 » Mon Nov 08, 2021 5:51 pm

Strictly you should ask a solicitor to draft suitable legal wording. I often then add in suitable comments for VAT purposes. I don't know of any standard suitable wording that you can use.


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