Anyone know about people borrowing a VAT-free room and damage deposits?

[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????

anyone?

please?

Try putting this in legal and see if anyone can help.

Personally I would think that as you are still not making any money from the use of the room because you are refunding it then it should be fine.

It is clearly a deposit for damage.

seems very sensible to me i reckon- as the managment committee presumably you are responsible for maintaining the room. Is there a risk of damage? ie what type of charities use it? If it is the local WI-ok but a deposit for a toddler or teen group would make a lot of sense.

on a practical basis- do groups use it regularly- ie weekly- if so how long would you hold the deposit for? If you do go down the deposit route you will have to have a procedure in place to agree the condition of the room prior to use and inspect after as well.

I don't quite understand 'the VAT free angle' - could you explain?

thanks for these posts. i will put it into legal too- thanks. the VAT free angle is that if you dont pay VAT on the cost of constructing the building then it is for charitable purposes only and you cant make money from renting the property out. donations are acceptable but entirely voluntary. there arent any regular groups using it yet but it hasnt been open very long (a month) and some groups have already used it more than once.