Spending Review and the charity sector

Announcements from the Chancellor’s Autumn Statement and Spending Review of particular interest to those in voluntary organisations.

Also see our CharityBlog Storify.

Big Lottery

No raid of the funds allocated from the National Lottery to the Big Lottery Fund, which hands out a large number of small grants to local charities. See NCVO’s ‘Lottery cash threat’ news release from Saturday (21st November).

Gift Aid review

A Call for Evidence on the operation of the Gift Aid Small Donations Scheme is to be launched in December 2015  – “a big ask met” according to a CFG tweet. » Continue reading news item ... “Spending Review and the charity sector”

New charity legal resource – VAT issues, Gift Aid for starters

Solicitors Bates Wells and Braithwaite have a new resource service, Get Legal, for charities and social enterprises. As well as providing affordable legal documents, available to download and customise, there is a Blogs and Knowledge section which will provide regular perspectives and insights on third sector matters.

First up is ‘Q&A: Tax and VAT for charities‘, outlining the potential complications of VAT, such as exemption, and also answering such questions as “Does HMRC really take charities to court?”. » Continue reading news item ... “New charity legal resource – VAT issues, Gift Aid for starters”

VAT on charity building hits hard

The complexities of VAT around charity work gets a hard illustration from a million pound bill handed to Caritas Anchor House. This is in connection with its construction of ‘move on’ flats, for previously homeless residents.

The charity says the unexpected cost is down to the new premises being reviewed by HM Revenue and Customs as a ‘residential and life skills centre’ rather than a ‘homeless hostel’. » Continue reading news item ... “VAT on charity building hits hard”

Transitional arrangements on direct marketing VAT

HM Revenue and Customs has issued a ‘Brief’ setting out its approach to supplies of direct marketing that have been wrongly treated as zero-rated supplies of delivered goods. This follows discussions with Charity Tax Group and the Direct Marketing Association after HMRC changed its view on the VAT status of direct mail.

As summarised by Charity Tax Group:

The Brief explains HMRC’s approach to supplies of direct marketing that have been wrongly treated as zero-rated supplies of delivered goods. » Continue reading news item ... “Transitional arrangements on direct marketing VAT”

Updated direct mail VAT guidance now out

Updated guidance on VAT on direct mail has now been published by HM Revenue and Customs, as trailed here earlier. The Charity Tax Group says that this will “provide certainty and clarity for charities” following HMRC’s change of view on the issue.

This means that contracts which charities previously thought were VAT zero-rated could now be charged at standard rate. There is a transition period to 31st July. » Continue reading news item ... “Updated direct mail VAT guidance now out”

Delay in direct mail VAT change

The transitional period for a change on VAT charges on direct mail sent by charities has now been extended to 31st July. Originally HM Revenue and Customs was to require full 20 per cent VAT on all contracts for direct mail from 1st April.

The extension is down to the delay in issuing its guidance on the rule changes, now due out 5th June, the Charity Tax Group has said. » Continue reading news item ... “Delay in direct mail VAT change”