Opening Charity stores

[SantasWonderland]

I would like to open a charity store, rather then giving a percentage of my sales as I do now.

Once I received the payment I would take out the postage cost etc and all profit would go to a local hospice or that months YDC.

With the YDC it would just be a case of sending the money to who ever collects it for that months YDC.

But do you need to get permission in writing to sell for the local hospice. I of course would put on the listings for that month where the money would be going.

So i'm after some advice and tips please on the best way of getting it up and running

[somersethedge]

as a foot note to the question....

does anyone know what the tax implications are if you are self employed

[Armstrongs]

Hi Santa,

No you don't need their permission to fundraise, but it would be a courtesy to let them know.

Drop them an email (with a link to your store ).

Also, if you are a UK taxpayer....fill in a Gift Aid declaration and send it to the hospice....they will make more £££'s

http://www.hmrc.gov.uk/charities/gift-aid.htm

This is one of my charity auctions, it has a fair amount of info:

http://uk.ebid.net/perl/auction.cgi?...087&mo=auction

Yvonne x

[SantasWonderland]

Thanks Yvonne will take a look at the links.

[raindropsies]

I would like to open a charity store, rather then giving a percentage of my sales as I do now.

Once I received the payment I would take out the postage cost etc and all profit would go to a local hospice or that months YDC.

With the YDC it would just be a case of sending the money to who ever collects it for that months YDC.

But do you need to get permission in writing to sell for the local hospice. I of course would put on the listings for that month where the money would be going.

So i'm after some advice and tips please on the best way of getting it up and running

Depends on the charity, as some only like to people to sell on certain sites, I never had an issue with WDCS

as a foot note to the question....

does anyone know what the tax implications are if you are self employed

No idea, but it's not earning is it?

Hi Santa,

No you don't need their permission to fundraise, but it would be a courtesy to let them know.

Drop them an email (with a link to your store ).

Also, if you are a UK taxpayer....fill in a Gift Aid declaration and send it to the hospice....they will make more £££'s

http://www.hmrc.gov.uk/charities/gift-aid.htm

This is one of my charity auctions, it has a fair amount of info:

http://uk.ebid.net/perl/auction.cgi?...087&mo=auction

Yvonne x

I've seen on just giving that you cannot claim gift aid for other peoples money if it's part of a raffle or auction heres the link I hope it works
http://www.justgiving.com/info/gift-aid/

[somersethedge]

No idea, but it's not earning is it?

ah but theres the problem... as far as I know every bit of money that comes in, as far as the taxman is concerned, needs to go through my books and therefore is income/earnings

[raindropsies]

ah but theres the problem... as far as I know every bit of money that comes in, as far as the taxman is concerned, needs to go through my books and therefore is income/earnings

It's not my income though is it? P&P is cost price if not at a loss, the money never becomes mine, it's automatically WDCS's I'll look into this on Tuesday and find out for sure.

As far as my business is concerned, I have 4 stores, the other is not part of my business

[SantasWonderland]

Depends on the charity, as some only like to people to sell on certain sites, I never had an issue with WDCS



No idea, but it's not earning is it?



I've seen on just giving that you cannot claim gift aid for other peoples money if it's part of a raffle or auction heres the link I hope it works
http://www.justgiving.com/info/gift-aid/

Thanks for the link Sarah, plan on listing for the YDC at the moment and then donate any money raised, to the charity nominated at the end of each month.

[moonwitch]

ah but theres the problem... as far as I know every bit of money that comes in, as far as the taxman is concerned, needs to go through my books and therefore is income/earnings

All income through my YDC sales goes through the books as income...the postage I put through as expenses when I do my business accounts but the charity donation isn't a business expence so I don't include that.

So I am out of pocket every time I take part in the YDC and end up paying more tax as well.

That's one of the reasons that this will be my last YDC until I am making enough profit from my business to afford donations.

The way I see it is that the YDC buyers are buying an item from me....so it is a sale...the postage is an expense.

Then I have agreed to donate the money for the item so can't put it down as a business expense.

[bykimbo]

All income through my YDC sales goes through the books as income...the postage I put through as expenses when I do my business accounts but the charity donation isn't a business expence so I don't include that.

So I am out of pocket every time I take part in the YDC and end up paying more tax as well.

That's one of the reasons that this will be my last YDC until I am making enough profit from my business to afford donations.

The way I see it is that the YDC buyers are buying an item from me....so it is a sale...the postage is an expense.

Then I have agreed to donate the money for the item so can't put it down as a business expense.

If you're putting everything except the donation through your books, you're missing a trick. Sole traders get tax relief on donations. Have a read here http://www.hmrc.gov.uk/businesses/giving/index.htm