Is this trading?

wabisabi

Hi

I am a L4 student and I thought it would be useful CPD to investigate a question posed to me by a friend. She is a trained counsellor and not in any way money motivated. She would like to offer a counselling service and just ask for donations, whatever people feel they could give to allow her to keep the service going.

I said I thought that HMRC would regard this as taxable income, but it would be interesting to an expect opinion. I wondered too if there is a way round this e.g. setting up a charity?

thanks

wabisabi

sorry, that should read "it would be interesting to hear an expert opinion"

paulstafford

I'm not particularly money motivated , do you think if I changed the description on my fee invoices to 'donation' I could get away with not treating them as taxable income?

She could look into setting up a charity, but then how is she going to be paid?

MarieNoelle

Maybe this would be a good starting point for CPD?
http://www.hmrc.gov.uk/manuals/bimmanual/BIM20000.htm

wabisabi

@MarieNoelle thank you, that's really helpful.