Table of Contents

BOTLab Quarterly Members' meeting Q4 2025

Bristol Open Technology Lab C.I.C general meeting

Date/time: 19:00, 14/10/2025.

Location: Bristol Hackspace, with online option.

Agenda

Proposed Membership Payment Changes - Felix

Proposal to:

  1. Introduce a minimum membership payment of £5pcm (we currently have no hard minimum, but £5 is our suggested low-income ‘Supported’ membership payment)
  2. Require all membership payments to be made via Direct Debit (over 75% of members do this already, as we stopped offering standing orders to new members a few years ago)
  3. Update the wording of our policies to reflect these changes

Context

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.

How this change helps

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:

  1. A defined membership payment at a ‘reasonable market rate’ – in this case £5pcm (more on this later). VAT rated.
  2. Any additional amount paid as part of a direct debit, or any one off, variable, or unsolicited payments as a ‘donation incurring no benefit’. Not VAT rated.

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!

Why £5?

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.

Timeline

Proposing deadline of Feb 1st 2026 (3 full calendar months time) to allow for several email reminders.

If this passes, what do I need to do?

If you:

Direct Debit options

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.