Specific need

Organisation seeks pro bono VAT & tax advice on leasing and income‑generation for counselling operations

Location

South East

Organisation

No5 Young People

Reference No.

25 672

What do they need help with?

No5 Young People is exploring a new lease of a property which is elected for VAT (and whose election was made in April 2012, meaning they can’t “un‑elect” it for seven years). They require expert pro bono VAT and tax advice to understand:

  • The VAT implications of taking on a VAT‑elected lease as a charitable incorporated organisation (CIO).
  • The process, risks, and consequences of registering for VAT as a charity whose services include counselling and psychotherapy (which are not always zero‑rated), distinguishing these from other welfare or psychological services that might benefit from more favourable VAT treatment.
  • How income from ancillary activities—such as low‑cost adult counselling, school counselling, room rentals, training courses, or workshops for businesses—should be treated for VAT, and how these might affect their overall VAT position.
  • Any structuring, shielding, or planning strategies to ensure that the charity remains viable, minimises VAT costs, and does not jeopardise charitable status or funding.

To date, No5 has identified the key challenges and risks but lacks the deep technical expertise to make fully informed decisions. They are ready to provide financials, service breakdowns, projections, lease documents, and operational plans to the advisor selected.

This advice is vital: getting this right will safeguard their funding, ensure their growth is sustainable, and protect the financial viability of their core counselling services to young people.

Timeline

As soon as possible

About the organisation

No5 Young People (Charity No. 1171313) is a Reading‑based mental health charity offering free, confidential counselling and outreach services to young people aged 11–25 within the RG postcode area. Since 1971, they have enabled access to professional support in person, in schools, online, or over the telephone, offering up to 20 weeks of counselling. They reach around 2,500 young people annually, helping them build confidence, reduce anxiety or depression, self‑regulate emotions, and reduce risks of self‑harm or suicidality. Their work helps to mitigate health inequalities and reduce longer-term risks associated with homelessness, unemployment, or social exclusion.

Their services include:

  • Youth counselling (in‑person, remote, school‑based)
  • Outreach, workshops, mental health training
  • Support for carers and the wider community
  • Low‑cost adult counselling where feasible

No5 is a Charitable Incorporated Organisation (CIO) and is registered with the Charity Commission.

https://www.no5.org.uk

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