Monthly bulletin: Charity tax – what you need to know

The monthly bulletin “Charity tax: what you need to know”, provides a high level update on major developments in charity tax.  Regular subscribers to the CTG newsletter will receive this update, but others interested in receiving it can register by completing the form below.

Charity tax - what you need to know

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Charity tax: what you need to know this month

Upcoming CTG events

  • TODAY – CTG: our vision for the future (24 March 2021): To find out more about our plans and how you can get involved, please follow the link from 4pm https://zoom.us/j/98418016922
  • CTG Budget 2021 and “Tax Day” webinar (30 March 2021): To register for this event including panellists from Pro Bono Economics and the Chartered Institute of Taxation, please complete the registration form here.

Latest developments

  • Restart Grants: If your charity has properties in the retail leisure and hospitality sectors they may be entitled to one-off Restart Grants. These vary in value from £2.6k to £18k per eligible property. Eligible properties can include charity shops, scout huts, village halls, botanical gardens, attractions, zoos, concert halls, museums and galleries. Full details here.
  • MTD for VAT – digital links:  Are you confident that you are ready for the new rules that apply from April?  Check out the training sessions we held with HMRC earlier this year which can be found here (under previous sessions).
  • Business grant allowances: Following a successful campaign by charities, limits on the amount of business grants that can be claimed (including the Restart Grants) have been increased significantly, unlocking up to £1m of extra funding for charities with eligible properties. Read more here.
  • VAT partial exemption methods:  The pandemic has had a significant impact on the rate of recovery of ‘residual’ input VAT for many charities.  Have you been adversely impacted by this? HMRC has just announced an accelerated process to request temporary alterations to partial exemption methods as a result of COVID-19. Find out more here.
  • COVID loans: The Coronavirus Business Interruption Loan Scheme (CBILS) is due to be replaced by the Recovery Loan Scheme (RLS) – if you wish to benefit from the Government paying all interest and fees for the first 12 months, you need apply for a CBILS loan before the 31 March to take advantage. Find out more here including video testimonial from charities.
  • Budget and Tax Day: CTG has produced detailed summaries on the Budget and Tax Day. Highlights in the Budget included an extension of the Job Retention Scheme and business rates holiday for certain properties.
  •  Making Tax Digital for Corporation Tax: Almost 50 organisations wrote to HMRC earlier this month to support CTG’s consultation response calling on HMRC to exclude most charities from new reporting requirements. Read more here.
  • Gift Aid claims: Many charities have a 31st March year end. Have you claimed all the Gift Aid you are due for the year to 31 March 2017, before it becomes time barred? 
  • Third Party data survey: The Office of Tax Simplification is seeking your views as a taxpayer about how the tax information held for you by third parties is reported to HMRC.  This is relevant to Gift Aid. Please complete the short survey. 

Follow the Charity Tax Group on Twitter @CharityTaxGroup or visit our website www.charitytaxgroup.org.uk