BOTLab Quarterly Members' meeting Q4 2025

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====== 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 =====
  * Directors report
  * Incidents and complaints review
  * Major project updates
  * Open proposals
  * ...

==== Proposed Membership Payment Changes - Felix ====
Proposal to:
  - Introduce a minimum membership payment of £5pcm (we currently have no hard minimum, but £5 is our suggested low-income ‘Supported’ membership payment)
  - 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)
  - 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:
  - A defined membership payment at a ‘reasonable market rate’ – in this case £5pcm (more on this later). VAT rated.
  - 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:
  * Currently pay £5 or more by Direct Debit – Nothing! But consider reviewing the amount of your Direct Debit if your financial circumstances have changed.
  * Currently pay less than £5 by any method – Move to one of our Direct Debit options by the deadline to retain membership.
  * Currently pay any amount by standing order – Move to one of our Direct Debit options by the deadline to retain membership OR continue to pay a standing order as a donation to the space, but be aware this will no longer count towards membership.

=== Direct Debit options ===
For clarity, the current options presented to new incoming members are below:
  * Supporter - £25pcm. If you’re able to give more, this level helps strengthen the whole community – it not only supports the space but also makes it possible for others to join at the supported rate.
  * Standard - £15pcm. This is the level most people choose, and it helps cover the real cost of keeping the space alive and thriving for everyone.
  * Supported - £5pcm. This option is here for anyone who might find the standard rate difficult. You’re just as much a part of the community, and your membership is made possible thanks to others giving a little extra.

Contact the committee to switch to, or between, Direct Debits. Custom amounts (>£5) are also possible.