Bristol Open Technology Lab C.I.C general meeting
Date/time: 19:00, 14/10/2025.
Location: Bristol Hackspace, with online option.
Proposal to:
The threshold for VAT registration is currently £90,000 taxable turnover in any rolling 12 month period. As we expand into upstairs and (hopefully) take on some new members to cover the cost of this improvement, we anticipate we may cross this. Should we be forced to register we would take on a significant admin burden and either have to take a 20% reduction in income (which we cannot afford), or pass this along and increase membership costs (which we don't want to do). Should we cross this threshold accidentally without registering there are substantial financial penalties - as happened to Nottinghack.
VAT is only chargeable on certain transactions - including goods and services which our membership payments currently count towards in their entirety.
By making these changes, we would instead be able to internally account for payments into the following categories:
This essentially limits VAT liability from membership to £60 per member per year, theoretically allowing for up to 1,500 members before we have to revisit this.
The actual limit is lower, as income from the £5 access card / fob fee, and from other sources such as paid, ticketed events are also VAT rated. Nor can we fit 1,500 members in the space!
This accounting practice is widely used, and entirely permissible provided that the ‘reasonable market rate’ is actually reasonable for the goods or services provided.
As previously mentioned Nottinghack have already encountered this issue, and hired a VAT specialist who recommended the £5 minimum. This was then clearly accepted by HMRC, as they stopped fining them! Conveniently for us, we are now able to point to that precedent.
Proposing deadline of Feb 1st 2026 (3 full calendar months time) to allow for several email reminders.
If you:
For clarity, the current options presented to new incoming members are below:
Contact the committee to switch to, or between, Direct Debits. Custom amounts (>£5) are also possible.