Interesting thought about RBRR

[SteveJP]

Over on the SOC Forum, we've had a bit of RBRR promotion and the following observation was posted yesterday, it may be food for thought, but suspect the practicality (and legality?) may not be possible.

A very worthwhile charity as you say, as they do wonderful work. However, around £45,000 will also be going to the petrol companies and government coffers from fuel sales! I wonder if there is any (legitimate) way in which any tax can be reclaimed, as you are in effect donating the fuel cost to a charity? When I used to get paid to marshal on Classic Car rallies, the organisers sometimes asked for our VAT petrol receipts after the event, presumably in order to claim it back, and they were certainly not charity registered. Perhaps entrants on this event are asked to do the same? It hardly seems fair to have to spend £45,000 in order to collect £65,000.

[ferny]

Good idea! I wonder how easy it would be to implement. Put an envelope in each drivers pack for the car to put all petrol receipts in, hand it in at closing where the car registration is written on it then a long weekend inputting data? Fairly easy to spot genuine ones as well I guess - any petrol receipt within that 48 hour period.

[JohnD]

If you just gave the money to charity and Gift Aided it, the charity can claim another 25% back from the Gov.
But you need to give the charity your name and address for that to work.
I think that to achieve this,  the donors who sponsor RBRR teams need to give their name and address.  Complicated.

I'm no expert on this, but I note that the books I buy in my local Oxfam book shop are often labelled "Gift Aided Item" so I presume that donations in kind may be eligable.  Thus there may be ways to obtain Gift Aid on sponsored donations.

Again, no expert, me, but to claim back VAT, I think you need to be registered for VAT.
JOhn

PS YES YOU CAN!  See: http://www.hmrc.gov.uk/charities/appendix_b2.pdf  Specific sponsorship form for GiftAiding sponsorship donations!
As to VAT and fuel tax, is this useful? http://www.sayervincent.co.uk/Asp/uploadedFiles/File/Publications/MadeSimpleGuides/VAT_and_Gift_Aid_for_Arts.pdf

[Grahamgl]

I seem to remember that for last year's RBRR, my first one, that the Virgin Giving website offered the Gift Aid option to people that sponsored me.
I do not think that the charity would be able to reclaim the VAT on petrol used by entrants as it itself has not incurred any expenditure on petrol, neither does it pay/offer entrants a sum per mile to cover fuel costs.

[Tim Bancroft]

I will discuss this with the Club's treasurer at tomorrow's CT Ctte Meet.

Its a great idea and if it can be achieved, it would be most worthwhile.

[DGF]

i had a conversation with one of my co-drivers..many years ago about the fuel cost V money raised thing..she asked why we didn't just not do the RBRR and give the charity the petrol money..she understood by the end

[SteveJP]

3020 wrote:

i had a conversation with one of my co-drivers..many years ago about the fuel cost V money raised thing..she asked why we didn't just not do the RBRR and give the charity the petrol money..she understood by the end

Yes I've had that conversation with a number of people with the same result eventually  :)

[CharlieD]

Just a thought - would it be worthwhile approaching one of the petrol companies for some kind of overall sponsorship (with stickers on all the cars) that could be given to the charity - The incentive for the petrol company being if all the drivers just used one brand of petrol it could significantly add to their fuel sales over the RBRR weekend plus it would be a really nice bit of PR for the petrol company.
Quite an easy way to raise some extra cash for the charity.

[Tim Bancroft]

I think the Club did that at the beginning of the 90s, not alot of interest then and I fear not a lot now!

We have discussed Steve's initial comment and will pursue the idea. I am about to contact MCS and Nick Jackson has kindly agreed to look at the topic with some of his accountancy colleagues.

[DGF]

we did do that with everyone getting a morrison's card ....i only stopped at two morrisons all the way round

[cook1e]

Yep, Problem is some of the parts of Britain that we drive through are pretty remote and also in the middle of the night it's sometimes a case of filling up whenever you can rather than waiting to find a particular brand of fuel and risk running out....

[coventry kid]

I've been meaning to look into the original question this week, but have been snowed under with tax returns. I know that there is provision for charities to claim gift aid if they sell donated goods, but this is quite different to 'donating' the fuel. Current hmrc concessions for charities are very narrow, and I have a feeling that this would not be possible. Otherwise, why not 'donate' the cost of a car rebuild to take part in the event; the line has to be drawn somewhere. If I get chance I will look into it further before Christmas, but likely to be the new year.

[Tim Bancroft]

Thanks Mark and Nick.

Be interesting to see if there are any loopholes.

The team that organises the RBRR is meeting in late Jan to catch up on progress.