Non-business activities can limit a charity's VAT recovery, but the rules aren't always clear. In a recent webinar hosted by Charity Tax Group, Socrates Socratous explored how to approach the distinction between business and non-business and apply HMRC guidance in practice.

On Tuesday 10 June, Socrates Socratous, Partner and Head of VAT Consultancy joined Charity Tax Group (CTG) for a webinar focused on helping charities understand the VAT implications of non-business activities.

Unlike exempt or zero-rated income, non-business income falls entirely outside the scope of VAT, which can restrict a charity’s ability to recover input tax. However, the line between business and non-business activities isn’t always obvious, especially where grants, contracts, and mixed-use income streams are involved.

In this session, Socrates broke down:

• How to determine whether income is business or non-business

• The two stage test now applied by HMRC

• Examples of how the rules are being applied in practice

• What the distinction means for VAT recovery and partial exemption

Whether you’re reviewing your organisation’s VAT position or preparing for a challenge from HMRC, this webinar offers clear, practical guidance on a notoriously grey area.

Watch the full recording and download the slides on CTG’s website: Events - Charity Tax Group