Lifting the Lid Part 6A - Betley Bonfire Committee Accounts and Transparency

 

Resident Response to piece on Betley Bonfire Committee by resident:

'Heaven forbid that a group of local volunteers should get together to organise an event enjoyed by thousands and which raises money for local good causes and organisations without some interfering busybody with too much time on their hands deciding it should be done her way, rather than the way that has worked for years. The bonfire committee is a voluntary organisation and how it chooses to operate is for them to decide.'

From Anonymous.

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The above is a response from 'Anonymous' to the blog re the piece recently posted on the Bonfire Committee.  The issues raised in the blog are, however, issues that residents in the parish are also raising.  However, the above comment appears to be missing the point. 

It is unfortunate, however, if reasonable questions are viewed as ‘interference’ and ‘busy-bodying’, when they are in fact a normal part of ensuring openness and maintaining trust.  They are also issues that residents and Parish Councillors should be concerned with: councillors as part of their role as resident representatives; and residents whose money they spend.  And this should be without fear or favour.

Where substantial sums are raised from the public and distributed within the community — particularly to public bodies — transparency is a reasonable expectation, not an optional extra.

Asking for clarity on how funds are allocated, whether accounts are published, and what criteria are used for awards is not 'interference'; it is a basic safeguard that helps maintain trust and confidence in the awarding body.

This is especially important where aspects of the process may appear unclear or not publicly explained. Openness helps avoid misunderstanding and ensures that arrangements are seen as fair and consistent.

Raising these questions is not about criticism of individuals.  It is about ensuring that processes are clear, understood, and accountable.  Transparency in these matters protects those distributing funds and those receiving them, and supports continued confidence across the community.

The fact that the Committee operates on a voluntary basis does not remove the need for clear and consistent processes when managing publicly raised funds, given that transparency in these matters is a vital part of maintaining trust and confidence.  The same applies to Parish Councils and Councillors.

Over time rules change.  Below are the rules which currently guide and inform any voluntary group that raises public funds.   Hopefully the Bonfire Committee and Anonymous will find them useful unless there are legitimate and circumstances not to comply:

'Clubs and societies must register for VAT if their taxable turnover exceeds £90,OOO (2024/25), and for Corporation Tax if they have profits from taxable activities or receive interest income. Non-profit, unincorporated member clubs may benefit from "mutuality" exemptions, but must still register for tax if they trade with non-members.

VAT Registration Rules

•    Threshold: Registration is mandatory if taxable turnover (including subscriptions, sales of goods/services, bar takings) exceeds £90,OOO in a 12-month period.     

•    Business Activities: VAT applies to taxable supplies, such as bar sales, gaming machines, or renting out facilities.

Structure: If the club is part of a larger, non-independent organization, the parent body might handle registration. Independent, non-incorporated clubs register under "Status 7". t)

Corporation Tax (CT) Registration Rules

•    Requirement: Clubs must register using form CT41G when they start a business activity, such as trading, selling property, or receiving investments.

•    Taxable Income: While members' subscriptions are usually exempt (due to mutual trading), profits from non-member activities (e.g., selling tickets to the public, renting out the clubhouse) are liable for CT.

•    CASCs: Community Clubs (CASCs) have specific exemptions on trading income up to £50,OOO.

Key Considerations

•    Mutual Trading: If a club exists solely for members to socialize and manage their own affairs, they are not trading with themselves, and therefore, profits from members are usually not subject to Corporation Tax.

Registration Process: Clubs must file tax returns online and, if required, provide their constitution and rules to HMRC to determine their tax status.

It is recommended to review HMRC guidelines on "Clubs and associations' VAT responsibilities (VAT Notice 701/5)" for specific, detailed rules', (13/02/2026)