(David Wyatt's notes from a conversation with Mike Harris 26 Jan 2013)

We are registered as a not-for-profit company (we do not have charitable status). This means we have to pay corporation tax at 20% on any profit we make. Profit is defined as income (from selling goods and services) minus expenditure, and we have been told that we only need to both paying corporation tax if the total of CT payable is below £100 in any financial year (our financial year runs 1st December to 30th November) - i.e. a net profit of less than £500. However, donations from members (including subscriptions) are not counted as income for these purposes, and since our outgoings vastly outweigh taxable income (the main examples of which at present are fees from Arduino workshops), we should not have to pay any corporation tax.

In order to be able to show this, we should be keeping track of the following information (perhaps one spreadsheet for each one):

  • Stock items: when we bought them and how much for (e.g. Arduinos - even if they're donated to us to sell, in which case they simply cost us nothing)
  • Income from selling goods and services: when and how much - we should issue invoices for every sale, and record them
  • Expenditure: all expenditure should be recorded, and should either go directly through the BOTLab account or via a member submitting an expenses form
  • Assets: bits of equipment we buy and how much for (and the sale price if we subsequently sell them)
  • Key deposits: we should keep track of who's got keys. As of 12 March 2013, we pay £30 to BV Studios for each key of which £20 is refundable if we return the key (though in practice DW doesn't believe we have *ever* returned a key to them); we ask the members for money under the same terms (though again very few people have ever returned a key).
  • Other donations, grants, loans, etc.
  • Shareholder's funds: the number of people who joined BOTLab and therefore pledged £1. This is the register of members, which should be kept by the membership secretary.

TO RESOLVE: Grants (e.g. Bristol City Council for Air Quality Egg workshop, Brighton Mini Maker Faire for attendance) - since we normally get them by submitting an invoice, are they income? Or donations?

MH: I will investigate this.

David's current tactic of going through the bank statements is useful but not ideal, since that's not a good format for the information. Better would be a separate spreadsheet for each category.

MH: We can keep the following on separate sheets of a single spreadsheet for the year:

* Invoices issued - invoice number, date paid (DW: issued?), total, date paid. * Asset register - date purchased, purchase value, description, date sold/disposed, disposed value * Members register - date joined, name, phone, email, amount paid (pledged) * Key register - date, who, deposit, returned date, amount returned

  • botlab/botlab_accounting_notes
  • Last modified: 8 years ago
  • by dwyatt