Find how to pay less tax as a charity and when to set up a subsidiary trading company.

When your charity’s trading does not relate to your charity’s primary purpose, it may still be exempt from tax if the turnover is below the small trading tax exemption.

Some of your charity’s profits may already be exempt from tax because they’re from a trading activity that is part of your primary purpose trading.

You can still claim an additional exemption for other trading profits if they are below the small trading tax exemption limits.

If your charity’s small trading turnover is higher than the exemption limits then you’ll have to pay tax on all of your profits from that trade.

Your charity’s gross annual income is the total turnover before deducting tax and expenses.

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