Budget 2013 sector round-up

Firstly links for Budget documents:
— HM Treasury for the full Budget report, policies, costings and related documents http://www.hm-treasury.gov.uk/budget2013_documents.htm.
— HM Revenue and Customs http://www.hmrc.gov.uk/budget2013/index.htm which includes a complete index (pdf, 37KB) of all their tax tables and technical documents at http://www.hmrc.gov.uk/budget2013/index-of-documents.pdf.

The measures of immediate interest to the voluntary sector include:

  •   the Employment Allowance, of up to two thousand pounds to offset against Employers NI. The Treasury reckons this will be worth a total of £45million to 35,000 charities.
  •   consultation on Gift Aid will look at wording of declarations.
  •   consultation on new social investment tax relief.
  •   encouraging volunteer-run events by improving the quality of guidance and publishing it on gov.uk.

Some sector news and reaction:

Relevant extracts

from Budget Report, Chapter 2:

2.41 National Insurance: £2,000 Employment Allowance. The Government will introduce an allowance of £2,000 per year for all businesses and charities to be offset against their employer NICs bill from April 2014.

2.45 Social investment tax relief. The Government will consult by summer 2013 on the introduction of a new tax relief to encourage investment into social enterprises. The outcome of the consultation will be confirmed at Autumn Statement 2013 with a view to introducing legislation in Finance Bill 2014.

Gift Aid and charitable giving
2.78 Gift Aid. The Government will consult on proposals to make it easier to claim Gift Aid through a wide range of digital giving channels, including options for enabling donors to complete a single Gift Aid declaration to cover all their donations through a specific channel.

2.79 Community Amateur Sports Clubs (CASCs). As announced on 4 March 2013, the Government will consult on measures to clarify the eligibility conditions for CASCs.

2.174 VAT: charitable buildings. As announced at Budget 2012, the Government will withdraw charitable buildings from the scope of the VAT reduced rate for the supply and installation of energy-saving materials, with effect from 1 August 2013.

2.240 Guidance for volunteer events. The Government will encourage volunteers to run events by improving the quality of the guidance and publishing it in a single document on www.gov.uk. Confusing guidance has previously deterred volunteers and obstructed events which are valuable to local communities.

2.260 Co-operatives legislation. The Government will consult in summer 2013 on options for raising the limit on individual subscriptions for Withdrawable Share Capital in Industrial and Provident Societies (IPSs) and introducing insolvency procedures for IPSs and credit unions.