What is it?
An unincorporated association is a group of people who get together for a common purpose. The organisation may have a set of rules or constitution, but it has no separate legal status. Often campaign groups, sports groups and membership clubs are run as unincorporated associations. It cannot sue or be sued and cannot own property. The people involved remain fully liable for the actions of the organisation.
What are the filing requirements?
None. Accounts may need to be prepared if the constitution demands this, but if so the accounts are only for the members, unless a corporation tax return is required.
What are the tax implications?
- Must register for VAT if making taxable supplies over the threshold.
- Should register for corporation tax and file corporation tax returns, although in many cases HMRC will agree that no taxable activity is taking place and so returns need not be filed.
- Can operate a payroll.
Slade & Cooper services
We advise a number of unincorporated associations.
- We can help to have the organisation’s tax record made dormant, by getting HMRC to agree that taxable activity is insignificant.
- We can advise on VAT which can be a complex area for many clubs.