Registering an Unincorporated Association for Corporation Tax

Introduction

If you run a club, society, or other unincorporated association, you may need to register for Corporation Tax even though you're not a limited company. This applies when your association starts trading or receiving income from sources like investments. Registration must be completed within three months of becoming liable to Corporation Tax.

What is an unincorporated association?

An unincorporated association is an organisation set up through an agreement between a group of people who come together for a reason other than to make a profit. Examples include voluntary groups, sports clubs, community societies, and members' clubs.

Unlike limited companies, unincorporated associations don't need to formally register with Companies House, and setting one up costs nothing. However, individual members are personally responsible for any debts and contractual obligations the association incurs.

When does an unincorporated association need to register for Corporation Tax?

Your unincorporated association must register for Corporation Tax when it either:

• Starts trading
• Receives other income (such as income from investments)

The fact that your association is 'not for profit' doesn't automatically exempt it from Corporation Tax. If your association makes a profit from trading or receives investment income, you'll need to pay Corporation Tax and file a Company Tax Return in the same way as a limited company.

Registration deadline

You must register within 3 months from the date your unincorporated association starts trading or receiving other income. Missing this deadline could result in penalties, so it's important to act promptly once your association begins generating taxable income.

Information you'll need to register

Before you start the registration process, gather the following information:

• Your organisation's name
• Any previous names your organisation has used
• The address where official mail should be sent
• The date the organisation was established
• The date the organisation became liable to Corporation Tax
• The date the organisation intends to prepare its first accounts
• Your first and last names
• Your relationship to the organisation or your role within it
• Your telephone number and email address

How to register

The standard registration method is to complete the online form, print it, and post it to HMRC.

To begin the process, access the online registration form through the HMRC website. Once you've filled in the required information online, you'll need to print the completed form and send it by post to the address shown on the form.

Alternative registration method

If you cannot register online, you can write to HMRC instead. Your letter must include:

• The dummy Unique Taxpayer Reference (UTR) 2410555555 at the top of the letter
• All the information listed in the 'Information you'll need to register' section above

Send your letter to:

Corporation Tax Services

HM Revenue and Customs

BX9 1AX

United Kingdom

After you register

Once you've submitted your registration, HMRC will process it and send your Corporation Tax UTR (Unique Taxpayer Reference) by post. This is the reference number you'll use for all future Corporation Tax matters.

The dummy UTR (2410555555) should only be used if you need to chase the progress of your registration with HMRC. Once you receive your actual UTR, you should use that for all official correspondence and tax returns.

What happens next

After receiving your UTR, your unincorporated association will need to:

• File Company Tax Returns with HMRC
• Pay Corporation Tax on any profits
• Keep proper accounting records
• Prepare accounts to the date you specified during registration

The filing and payment obligations are the same as those for limited companies, even though your association is unincorporated.

Sources

• Register an unincorporated association for Corporation Tax
• Unincorporated associations

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.