This is a follow-up to the question "Can a charity give up its charitable status?", posted on 5 June.

Hi Charlie,

Further to my question regarding a Pre-school giving up charity status: we have now ascertained that the group have no financial records/supporting invoices/receipts. They do however have their bank statements. In the absence of any records we are assuming that an accountant would be unable to untangle the charity and the unincorporated group and make the decision in respect of whether the club is one entity or two sperate organisations.

The accounts submitted to the Charity Commission by the staff are assessed on their bank statement only. As all proceeds are banked together (with no record made of individual transactions) and expenditure is assessed with one cheque being made out when required, the group has indicated there is some guess work involved in this process.

There are 4 trustees but they have no meetings so it would appear that the staff run the 2 groups as 1 but with very little knowledge and support available to them. They have had 2 bank accounts in the past but at some point decided to pay all proceeds into the non charity account.

We have now set up a formal accounting procedure for them which involves retaining all relevant income and expenditure paperwork and ensures that they are now keeping two distinct records for the Charity and unincorporated group. Where would you suggest the group goes from here?

As an independent support organisation what is our position with regard to what we now know about this group, are we obliged to inform the Charity Commission about the situation? Would it be worth laying cards on the table to the Commission letting them know they are now getting things in order and ensure that thay have the necessary support to operate correctly from this point on?

Ideally the group would want to de-register as a charity and run as a Company Limited by Guarantee, but we have advised them to sort the above issues first before taking the next steps.

This is from an organisation supporting community radio stations both in the UK and overseas: "Can we purchase and export radio equipment without paying VAT so long as the equipment is delivered and used outside the EU? (we've been given conflicting answers to this question)".

If we sell off a 9 month old computer which is now surplus to requirements, do we have to charge VAT? (We are VAT registered).

If we sell off a 9 month old computer which is now surplus to requirements, do we have to charge VAT? (We are VAT registered).

An incorporated charity has recently refurbished a building owned by a third party using grants given for that purpose. The refurbishment cost approximately £100,000. The building is leased from the owners and an annual rent paid. The lease cannot be sold. Apart from the fixtures and fittings would one expect any of this to appear on the balance sheet as a fixed asset? Should it appear on the asset register?

Dear Charlie, Many thanks for the last reply to my previous question.

I have another query. I rang HMRC but I still need clarification on VAT on capital projects related to childcare, and also where providers are either dual registered (charitable company) or unincorporated charities - what is the situation as regards VAT in capital and revenue projects?

Any assistance / pointers would be appreciated.

We are about to make our company dormant.

Can we start a dormant date at anytime within a 12month year? Or do we have to start at 6th April? Are there any particular areas to pay attention to?

Any advise would be most appreciated.

Dear Charlie,

Thank you for the previous answer re: debt recovery. A charitable company has a mortgage taken out by one of the directors / trustee for £38k with:- 'Fixed & floating charge over the undertaking and all the land & whatever rights that exist over the land now and in the future and all property and all assets present and future including goodwill, book debts.'

Some other highlights:- The charitable company went into administration and was run under licence by a Co. Limited by shares, & all income & expenditure incurred by this CLS was transferred back to the charity and incorporated into the accounts; this agreement ceased when creditors agreed a percentage of their debts in a single payment. Accounts have been passed 'true & fair'.

Can you shed any light on the above - is the mortgage charge normal? Is the arangement with the CLS while in adminisdtration usual? Any help appreciated.

Dear Charlie,

A local nursery has a problem with a parent who has outstanding arrears of £5k - despite letters, face-to-face meetings; threats of legal action etc. nothing has resulted from this with the result that the family concerned has now had their children excluded from the nursery.

Is the small claims court the best way to resolve this or what is another legal remedy that would be useful in a situation like this?

As ever any advice very much appreciated.

Dear Sir/Madam, Is there a difference between a Civil Service Pension and a Pension Scheme run by a Local Authority. A colleague has left OFSTED (Civil Service) to join a LA and has received a standard letter about a 'Classic Scheme pension and Lump Sum' due to be paid when she is 60 (she is now 45 years old). It contains a line "You may, subject to conditions, transfer the cash value of your benefits to a new employers pansion scheme, or to a personal pension of your choice. If you choose either option you will have to transfer all your Civil Service benefits." Again I realise that bespoke advice will be required; but any help with any considerations, questions to ask etc. - indeed anything at all that you would consider useful would be grately appreciated.

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