Taking a damage deposit for a room built paying no VAT?

[nowwearefour]

I am on the management committee of a room that was paid for without paying VAT on the basis that it isnt hired out. That is fine as we just let local charities borrow it. It is all fine except that I think we should take a returnable damage deposit in case anything goes wrong. There are those among the group of us running it that think we shouldnt ask for this as it is like charging to use the room. This seems utterly ridiculous to me but i wondered whether anyone had more proper knowledge than just my 'sense' that of course we can ask for a cheque and simply return it if the room is returned as it was left????

In VAT terms that's fine, as is getting someone to pay the cost of repairs. You aren't hiring the room. However, if there is any damage you must only withhold whatever money is required to repair the damage.

thans prh47. that is what my instinct told me. i shall inform the group. of course we would only withhold the value of the damage, but i do think it reasonable to be covered to be able to do that! pleased it is legal!