29 May 2019
Charites that have to use partial exemption methods to deduct VAT, or have incurred costs of over £250,000 on capital projects, will be pleased to hear that in the Spring Statement the Chancellor announced a ‘call for evidence’ to look for ways to simplify and improve the VAT Partial Exemption Regime and the Capital Goods Scheme.
This is intended to ensure they are as simple and efficient for taxpayers as possible. This follows the recommendations of the Office of Tax Simplification, who have looked in detail at the UK VAT system and possible areas for improvement. In our view a review is long overdue as these two issues cause major administrative headaches particularly for smaller charities.
If you have a question about VAT, complete the form below and one of our experts will contact you.