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HMRC internal manual

VAT Registration

Entity to be registered: clubs and associations: questionnaire to establish independence of sections, branches and so on: finances

  • Is the subsidiary entity obliged to pay any profits or surpluses to the parent organisation? (Note: This is not of itself conclusive that the subsidiary entity is financially tied to, or dependent upon, its parent organisation)
  • Does the subsidiary entity make all its purchases in its own name?
  • Does the subsidiary entity have its own bank account?
  • If so, who are the signatories to the account?
  • Are the signatories members of the committee?
  • Does the subsidiary entity pay for its own utilities (gas, water, electricity, BT and uniform business rates)? If it doesn’t, who does pay for them?
  • What would happen to any funds or assets held by the subsidiary entity if it were to be dissolved?
  • Does the subsidiary entity require the approval of the parent organisation before it can incur expenditure?