Raising additional income can be difficult for an academy, but fundraising events can provide an efficient way to supplement the entities finances.

This fundraising can cover a wide range of events, including school fetes and fairs, plays, concerts, quiz nights, social functions, auctions and non-uniform days. It is also possible to treat online events as fundraising events.

Fundraising events have a separate VAT rule and this usually avoids the need to charge VAT on qualifying events.

There are conditions that need to be met before this treatment applies, otherwise the event will be subject to VAT at the standard rate. Qualifying events include:

The supply of goods and services by a qualifying body in connection with an event—

(a) that is organised exclusively for the body’s own benefit,

(b) whose primary purpose is the raising of money, and

(c) that is promoted as being primarily for the raising of money

There is a further restriction that limits the exemption to cover a maximum of 15 events of the same kind in the same location per year. Small events generating less than £1,000 per week can be disregarded when counting the 15 event limit, but where a larger number of events is held care will be required to ensure that the regular nature does not make the events into a trade rather than a fundraiser.

In addition to the rules above, care is needed to ensure that the payments received are genuinely to help raise funds for the academy and are not simply the purchase of goods or services on a commercial basis.

VAT Treatment


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