Charity VAT Issues

New rulings may mean that you need to review how you deal with VAT

One of the larger accountancy firms, Crowe UK, has recently flagged up a number of potential VAT issues affecting charities. If any of these affect your organisation, it may be worth chatting to your accountant. Alternatively, you can chat to our partners at WYCAS, or come along to the next Finance Worker Forum that we host with them, to discuss any concerns.

The issues identified are:

  • A new ruling on community buildings means that some sports clubs, and other organisations that aren't registered charities but who are managing buildings for community use, may be now be eligible for zero-rated tax. This may include those that have previously been denied zero-rating or who have had it restricted to charitable use only. Read more...
  • Potential problems with charity shops running retail gift aid schemes. Read more...
  • HMRC may be challenging and checking how charities are 'reverse charging' - i.e. accounting for VAT on services from abroad, which may include web hosting, software licences, consultancy, marketing, fundraising, services from Google and Facebook. Read more...

Watch out for problems with retails gift aid schemes

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