The VAT liability of your charity’s income determines whether it has any requirement to register for VAT, and the extent of its entitlement to VAT recovery. A key issue is whether any activities are deemed to be “business” for VAT purposes. Similarly, many of the VAT reliefs available to charities on expenditure and income depend on understanding that concept, and on specific requirements; getting this wrong could result in unexpected penalties.
Our VAT team of specialists have over 90 years’ combined experience in the sector, and are supported by our charity team which has provided accountancy services to the not-for-profit sector since 1992. The breadth of our client base means that whatever challenge you face, we are likely to have dealt with it before, so we’re well positioned to find the right solution for your organisation.
We also support various other sectors, including research organisations, membership organisations, city livery companies, hospital charities, and welfare, health, and care organisations.
If your organisation falls within one of these sectors, please get in touch using the contact form below, and one of our VAT consultants will reach out to discuss your requirements.
Brexit has a significant impact on VAT and customs processes for any entity, including charities, that moves goods between the UK and EU, between GB and Northern Ireland, and any entity buying goods from EU suppliers or selling goods to EU consumers.
Charities sending or receiving physical goods to /from the EU are not exempt from having to deal with new export and import processes, and the increased use of the internet for sales and events means that you need to be aware of potential VAT registration obligations in the EU. It is particularly important for charities to be aware of the import VAT and duty reliefs available.
Our VAT consultancy charity experts can help you make sense of these changes and advise on new VAT obligations, including support with EU and international VAT registration and compliance if necessary. Additionally, you can download our guide to UK VAT and customs from 1 January 2021, which covers the headline VAT and customs changes you need to be aware of.
We can help you to review your charity’s VAT position, determine the VAT liability of income, advise on whether VAT registration is required and ensure your processes are up to date with changes in law, HMRC policy and your organisation’s activities. Our VAT consultants can provide you with a full in-depth organisational 'health check' or specific transaction-based advice, depending on your requirements.
Charities usually undertake non-business activities and often make VAT exempt supplies. As a result, even when registered for VAT, charities may not be entitled to reclaim all of the VAT on costs. We can advise on VAT recovery/partial exemption methods and setting up accounting records to save you time, including managing the requirements of Making Tax Digital.
These are the source of the biggest VAT costs for charities and getting it wrong can be very damaging financially. Understanding the VAT implications of these projects and associated zero and 5% VAT reliefs at an early stage can save you money, especially where not all of the VAT will be recoverable. Our VAT specialists can help you with planning; from advising on building plans and construction contracts, to managing any VAT Capital Goods Scheme adjustments.
We can ensure you are aware of the VAT reliefs available on purchases and sales to avoid unnecessary cost.
Your charity may have formed a subsidiary to undertake trading activities. Our VAT team can advise on the potential for VAT savings and simplification of VAT compliance by registering the charity and subsidiary in a VAT group.
We can assist with dealing with HMRC at all levels; from managing queries, reviewing HMRC assessments and minimising penalties, to instructing Counsel and lodging appeals to the First Tier Tribunal.
Our programme of regular sector-focused training courses cover major updates and case law, with practical advice to help keep you on top of VAT changes. We also offer bespoke training for individual organisations tailored to your exact requirements.
Fill out the form below and one of our VAT consultants will be in touch to discuss your requirements. Alternatively, please feel free to contact our VAT Partner, Socrates Socratous direct on +44 (0)20 8037 3113 or email socratouss@buzzacott.co.uk.