Last updated: 13 March 2019
Thanks to those who attended our first charity VAT event in 2019. We're really glad that so many of you made it on the day and hope you found answers to your questions. From the feedback we had on the day and since the event, we've put together some useful points for you to take away to give you a steer on dealing with your VAT.
If you have any further questions, please give us a call.
Five things to take way from the event:
- Do you know the VAT liability of the supplies made by the charity? This affects not just the VAT that might be payable but also the entitlement to VAT recovery.
- Is our organisation maximising the use of zero rate reliefs? Most charitable organisations can’t recover VAT, so the best way of mitigating the cost is not to be charged VAT in the first place where possible.
- Is the VAT recovery method fit for purpose and when was it last reviewed? Changes in activity or structure might mean that the existing VAT recovery method is no longer producing a fair and reasonable result
- Do we have land/property transactions to consider? Projects of this nature invariably involve large potential VAT costs and any opportunity to reduce the VAT cost requires planning from the outset
- Are we ready for Making Tax Digital? While HMRC are taking a light touch to penalties during the ‘soft landing’ period, it will be important that organisations use this period to acquaint themselves with the long term requirements of digital record keeping.
Last updated: 13 March 2019
Thanks to those who attended our first charity VAT event in 2019. We're really glad that so many of you made it on the day and hope you found answers to your questions. From the feedback we had on the day and since the event, we've put together some useful points for you to take away to give you a steer on dealing with your VAT.
If you have any further questions, please give us a call.
Five things to take way from the event:
- Do you know the VAT liability of the supplies made by the charity? This affects not just the VAT that might be payable but also the entitlement to VAT recovery.
- Is our organisation maximising the use of zero rate reliefs? Most charitable organisations can’t recover VAT, so the best way of mitigating the cost is not to be charged VAT in the first place where possible.
- Is the VAT recovery method fit for purpose and when was it last reviewed? Changes in activity or structure might mean that the existing VAT recovery method is no longer producing a fair and reasonable result
- Do we have land/property transactions to consider? Projects of this nature invariably involve large potential VAT costs and any opportunity to reduce the VAT cost requires planning from the outset
- Are we ready for Making Tax Digital? While HMRC are taking a light touch to penalties during the ‘soft landing’ period, it will be important that organisations use this period to acquaint themselves with the long term requirements of digital record keeping.
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VAT consultancy for charities
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