MRAssociates — Knowledge base
We provide the only free knowledge base in the UK dedicated to Supported Exempt Accommodation
In the same topic…
- contentWhy is exempt accommodation exempt from benefit limits?
- contentWhere does the law define “exempt accommodation”?
- contentWhat is the social sector LHA?
- contentWhat is the history of exempt accommodation?
- contentWhat is Supported Exempt Accommodation?
- contentWhat is disguised profit?
- contentWhat is an asset lock?
- contentWhat is a non-metropolitan county council in England?
- contentWhat is a housing association?
- contentWhat is a DWP resettlement grant?
- contentWhat are the benefit limits from which exempt accommodation is exempt?
- contentWhat are the advantages of exempt accommodation?
- contentWhat is a voluntary organisation?
- contentTell me more about registered housing associations and exempt accommodation
- contentTell me more about registered societies
- contentWhat is exempt accommodation?
- contentHow is housing benefit calculated when a person living in exempt accommodation is employed?
- contentHow is Housing Benefit calculated for exempt accommodation?
- contentHow is accommodation “provided by” a social or voluntary sector landlord?
- contentHow does the taper work for employed claimants living in exempt accommodation? (Figures)
- contentWhat is the law on exempt accommodation subsidy?
- contentSubsidy calculation when the landlord is a registered housing association
- contentHow do the housing benefit subsidy arrangements work in exempt accommodation
- contentWhat does “not trading for profit” mean?
- contentSubsidy calculation when the landlord is a charity, voluntary organisation or English non-metropolitan county council
- contentWhich landlords count as being in the social or voluntary sector?
- contentWhat is a registered charity?
- contentWhere does the law define exempt work?
- contentExamples of subsidy for exempt accommodation
Topics
Can a not-for-profit body buy goods and services from its own members and directors?
Basic info
There is no reason why a not-for-profit body cannot buy goods and services on a commercial basis from its own members, directors, trustees etc. This was the conclusion of the Upper Tribunal in the case Wirral Borough Council v MF (HB) [2013] UKUT 291 (AAC). The UT’s reasoning was as follows:
- It is inevitable that a not-for-profit body will have to enter into commercial transactions with suppliers who sell goods and services for profit
- There is no reason why those suppliers should not be companies or individuals who have links to the not-for-profit body, for example its members, directors or trustees or commercial companies associated with those members, directors or trustees, provided the dealings between the not-for-profit body and its suppliers are “bona fide and commercial”
What does “bona fide and commercial” mean?
This expression describes an arrangement that is:
- carried out for valid reasons in the context of a not-for-profit body, i.e. it is reasonable that the not-for-profit body should be procuring the particular service/goods in order to carry out its objectives, and
- priced at a reasonable commercial rate so that the supplier is not abusing his/her position by over-charging a not-for-profit body over which s/he is able to exercise control or influence
- In simple terms, the not-for-profit body would not be able to obtain the service/goods at a cheaper price elsewhere
What if the not-for-profit body is paying more than it needs to for goods/services supplied by someone with close connections?
In that case the local authority might suspect that the people who run the not-for-profit body are taking a “disguised profit”.