VAT on sponsorship

c1223

Free Member
Nov 10, 2014
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0
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I've read the HMRC VAT notice 701/41 regarding VAT and sponsorship but I'd like some clarification please.

I'm on a student committee (unaffiliated with the university) that runs a fundraising event each year. Although we ourselves aren't a charity, all money raised is donated to a designated charity.

Money comes in via sponsorship and ticket sales. In return for sponsorship the companies are named on marketing material and given free tickets etc... Some sponsors also provide us with hospitality.

As we aren't VAT registered am I correct in assuming that all sponsorship we receive should be VAT free? Total incoming each year is around £60,000. Outgoings are around £40,000, with the rest being donated to charity.

Thanks
 

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