GoFundMe donation/gift tax question

Gh256

Hello.

I thought I posted this but it doesn’t seem to be there.
I wanted to ask what the tax implications of gofundme donations are if any. Do you pay tax on what you receive as these are gifts from people?
I have one set up because of heart condition have and I didn’t want to get help and then end up with a large bill I was not expecting.

Appreciate your thoughts.

Kind regards.
Glenn.

uknick

I assume you read these;

https://support.gofundme.com/hc/en-gb/articles/204295498-Taxes

https://support.gofundme.com/hc/en-gb/articles/360001977948-Taxes

Gh256

Yes I did thanks.

I did not find it helpful as it was a vague general statement that they themselves say might not be the case. I have seen stories of people getting a tax bill they did not expect which I do not want to happen.
It appears more complicated than their statement.

Glenn

uknick

It is clear from the Gofundme website you need advice as per your specific circumstances. I think this can only be given by someone who knows all your details. I'm not sure you can get all this from the internet so, as they say, talk to a professional adviser who has experience in this area.

Gh256

Yes thank you I can read and am aware of that. I thought asking here though there might be some people who know about these things.

Please don’t respond if you aren’t being helpful.

uknick

I am being helpful.

It is clear from the Gofundme site the tax situation can be complicated if you're not a registered charity, which I assume you're not or you wouldn't have asked the question.

I can see three options with regard to tax advice for you;

give chapter and verse on your financial affairs on an open internet forum and then take advice from a faceless stranger whose only qualification might be their ability to log on to MSE,
find a tax adviser versed in the system or,
ignore any tax implications

I have no idea how much you're hoping to raise, but I'd favour option 2 as a couple of hundred £ (if that) now could save you lots more in the long term.

.

edgex

You could ask HMRC

jimmo

IMHO in setting up your own Gofunding page you are asking people for money for you.
That is begging and your income will be taxable, possibly as trading income (professional beggar) but more likely as miscellaneous income.
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim100000
What seems to be more common is that others invite strangers to donate to a worthy cause so that the person who eventually benefits has never asked for the money..

tebthereb

Jimmo, I agree professional begging income would be taxable but prima facie that seems unlikely here.

I would be more interested to know why you think this might be taxable as misc income? The first manual from your link says “voluntary receipts such as gifts and gratuities” are not within this?

The guidance on the Gofundme website (from the links above) is loosely worded. They seem more focused on the tax position of the donor than the donee as they talk about tax deductibility. This adds to my gut feeling that there is little for the OP to worry about unless, exceptionally, they are a professional beggar (which I have no reason to suspect).

jimmo

tebthereb
I don't think there is much I can add to my last post. Opinions will obviously differ but I think there is a world of difference between people fundraising for others and those that fundraise for themselves. Whilst any funds raised will be gifts the fact is that the OP has actively asked for the money. To my mind that is probably sufficient to justify assessing the income.

If I was asked the question in my working days I would have wanted to meet the OP to properly evaluate but I rather think that I would have to come down on the side of the funds raised being taxable income. However I would far sooner have not been asked the question in the first place and certainly would not have gone looking for such cases to take up.

edgex

tebthereb wrote: »

Jimmo, I agree professional begging income would be taxable but prima facie that seems unlikely here.

I would be more interested to know why you think this might be taxable as misc income? The first manual from your link says “voluntary receipts such as gifts and gratuities” are not within this?

The guidance on the Gofundme website (from the links above) is loosely worded. They seem more focused on the tax position of the donor than the donee as they talk about tax deductibility. This adds to my gut feeling that there is little for the OP to worry about unless, exceptionally, they are a professional beggar (which I have no reason to suspect).

The important word there is "voluntary"
ie. the source of the funds has voluntarily chosen by themselves to gift/tip the money, there is no agreement to do so, & there has been no request for the money.

Example;
A milkmans customer leaves out a Christmas card with a £5 note inside. There is no agreement to do so, & the milkman hasn't requested it, therefore it is a voluntary receipt.