{"id":823,"date":"2021-05-04T00:00:00","date_gmt":"2021-05-03T23:00:00","guid":{"rendered":"https:\/\/duffyregan.co.uk\/index.php\/2021\/05\/04\/charity-using-a-subsidiary-trading-company\/"},"modified":"2021-05-04T00:00:00","modified_gmt":"2021-05-03T23:00:00","slug":"charity-using-a-subsidiary-trading-company","status":"publish","type":"post","link":"http:\/\/duffyregan.co.uk\/index.php\/2021\/05\/04\/charity-using-a-subsidiary-trading-company\/","title":{"rendered":"Charity &#8211; using a subsidiary trading company"},"content":{"rendered":"<p>One or more charities can set up a subsidiary trading company to trade on their behalf. This may be a useful strategy if your charity:<\/p>\n<ul>\n<li>makes profits on trading that is not linked to its primary purpose<\/li>\n<li>makes a profit that comes close to or is higher than the small trading tax exemption limit<\/li>\n<li>wants to protect its assets from any trading losses<\/li>\n<li>wants to have a separate organisation to carry out all its trading activities<\/li>\n<\/ul>\n<h3>VAT considerations<\/h3>\n<p>A charity&rsquo;s trading company will not have to pay VAT on:<\/p>\n<ul>\n<li>profits it makes from donated good sales (as long as it gives these profits to the parent charity)<\/li>\n<li>fundraising events it runs for its parent charity<\/li>\n<\/ul>\n<p>Other types of VAT relief that charities get are not available for their trading subsidiaries.<\/p>\n<p>Trading companies must pay tax and VAT on all their other income and profits in the same way as ordinary limited companies.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>One or more charities can set up a subsidiary trading company to trade on their behalf. This may be a useful strategy if your charity: makes profits on trading that is not linked to its primary purpose makes a profit that comes close to or is higher than the small trading tax exemption limit wants [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-823","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"_links":{"self":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=823"}],"version-history":[{"count":0,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/823\/revisions"}],"wp:attachment":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=823"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}