Ltd company.

rollerworld

Hello, if I form a LTD CO for a free helpful web site, can I accept donations to offset expenses? Or is the best way to register a basic charity to use the donation money against expenses? I do not expect donations of over five thousand pounds.:)

paddyrg

Yes you can. Is it really a charity? You don't sound like you plan any charitable activities. If you're just setting up a website of helpful things, why not just set it up?

Wywth

rollerworld wrote: »

Hello, if I form a LTD CO for a free helpful web site, can I accept donations to offset expenses? Or is the best way to register a basic charity to use the donation money against expenses? I do not expect donations of over five thousand pounds.:)

You don't need to form a limited company or a charity to publish a website - you just need need a hosting account (or your own server)

InsideInsurance

But on the basis you are receiving money, if it isnt a charity and no Ltd then you must register as a sole trader to declare the income

Wywth

InsideInsurance wrote: »

But on the basis you are receiving money, if it isnt a charity and no Ltd then you must register as a sole trader to declare the income

The OP says they want to form a free helpful website. Any donations towards that website will be presumably entirely voluntary and will be used to offset the expenses of hosting that website, etc.

Therefore I would suggest there is no commerciality in this set up, and there is no intention to make any profit, so the OP would not need to register with HMRC (but should keep matters under review in case the situation changes)
http://www.hmrc.gov.uk/guidance/selling/examples.htm

paddyrg

From your PM, OP...

No, don't form a charity, no need.
You almost certainly do not need a limited company either. If that site you sent me is a .com (and it is all of the site), stop now. If the snapshots are of a working web app, then it's not so bad, but I would stop spending money until you raise some. You can do this with adsense, selling related books or services with affiliate links, but I can't imagine donations is a big revenue stream.

I'd suggest posting the whole project here as there are people with more experience here than me who will have more specific advice.

InsideInsurance

Wywth wrote: »

The OP says they want to form a free helpful website. Any donations towards that website will be presumably entirely voluntary and will be used to offset the expenses of hosting that website, etc.

Therefore I would suggest there is no commerciality in this set up, and there is no intention to make any profit, so the OP would not need to register with HMRC (but should keep matters under review in case the situation changes)
http://www.hmrc.gov.uk/guidance/selling/examples.htm

Which of those situations do you think the OP fits in? All are about buying and selling products.

The OP is creating content and hoping that content will generate visitors and in turn revenue. They may not turn a profit but inevitably they may but the OP has not stated what they would do if the revenue exceeded the basic costs.

Of cause you can draw some parallels to this website, helpful content, generating revenue from its visitors, given its recent sale to a commercial operation then it is without doubt possible for it to be profitable.

Given how cheap webhosting can be and how easy it is to turn a small profit from a site then it wont be difficult to find themselves in profit and thus have potential issues with HMRC where as if they register as a sole trader and declare their income and expenses accurately they are fully covered irrespective of if they turn a profit or make a loss.

Wywth

InsideInsurance wrote: »

Which of those situations do you think the OP fits in?...

1a ... before the seller started operating in a commercial way, selling them via the internet with a view to creating a profit

InsideInsurance wrote: »

The OP is creating content and hoping that content will generate visitors and in turn revenue.

Not the way I read it. Which bit of their post are you referring to that suggests this?

InsideInsurance wrote: »

They may not turn a profit but inevitably they may but the OP has not stated what they would do if the revenue exceeded the basic costs.

The OP said their intention was to run a free to use website.
I did say the OP should continue to monitor the situation, should it later change.