Charity Status

NSH PTA registers as a charity...

Registered Charity Number 1093909

New Scotland Hill PTA has registered as a charity, with effect from 24th September 2002.

Why? Because since the 1993 Charities Act, we have been a charity, whether we knew it or not. We should have registered way back then, provided our annual gross income (before any expenses or costs) was above £1000. In a nutshell: we have no choice.

This has a large(ish) bearing on the administrative and record-keeping side of the PTA, but not a great deal of effect on what we do day to day.

Being a registered charity means that:

	our Committee members are trustees (all of them, like it or not)
	we have to put our charity number on all paperwork
	we need to keep proper books and records and produce an annual Trustees Report
	the accounts need to be independently examined
	we are not liable for corporation tax on our fund-raising income
	we can trade to a certain level tax free

All charities can do an unlimited amount of trade in their primary area tax free (e.g. a private school selling education). The VAT man and the tax man have jointly agreed that charities can trade to a certain level in 'related goods' and remain tax-exempt. We consider uniform to be 'related' to education, and the limit which applies to us is £5000 per annum. Our new constitution prevents us from 'taxable trading' so we are strictly limited to the £5000 on such trading. There is no limit to our trading in donated or bought goods at fund-raising events.

Update June 2003: Our first year's accounts are due to go to the Charity Commission this month. However, we spoke to someone there a few weeks ago, who said we're only a tiny charity, so not to worry if we don't get the necessary forms from them in time to comply. Ha!