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CTG Newsletter – 13 January 2017

Filing charity trading subsidiary tax returns and charity accounts

CTG Management Committee Member Justin Bevan recently tried to undertake the annual task of filing Oxfam’s charity trading subsidiary tax returns to HMRC.  He found that the system had changed and that he could no longer use the online service to file CT600 and iXBRL tagged accounts. Instead he was required to use third party software to file very simple charity subsidiary accounts. One respondent has suggested that in practice most charities should consider using an accountant to do this anyway. What is your experience and view on this issue? Contribute to the discussion here.

Update on the Adecco temporary workers VAT case

The Upper Tribunal has heard Adecco’s appeal on the VAT treatment of its temporary workers and a decision is expected by March 2017. This is an important case for the sector as it is an area of major cost for many CTG members.  Deloitte has provided a summary of the Upper Tribunal hearing which can be read here.

CTG’s new VAT case law tracker has also been updated to reflect this summary.

Discretionary business rates relief for charities

CTG has expressed concerns about the trend towards discretionary rate relief being squeezed due to cost concerns. As decisions are made at a local level it can be hard to track all policy changes, so we would welcome feedback (to [email protected]) from charities on any changes to the discretionary relief they receive (and where relevant the rationale for this) and how this varies between local authorities. CTG has reviewed a number of recent local developments, including in Kent, where Medway Council plans to introduce new rules for discretionary business rates relief based on the type of charity in question. Full details can be found here.

Tampon Tax Fund recipients revealed

A Government response to Parliamentary Question has highlighted the recipients of the Tampon Tax Fund to date. The Treasury has stated that the zero rate of VAT for sanitary products will take effect as soon as possible after Royal Assent of the Finance Bill (2016), with some notice to retailers, but this is still to be implemented. Further information is available here.

Meeting with HM Treasury on Gift Aid Donor Benefits

A number of CTG representatives will be attending an HM Treasury working group on Monday on the latest Gift Aid donor benefits consultation. Please let us know if you have any feedback you would like us to pass on. To recap, the Government is seeking views on reforms of the current donor benefit thresholds alongside the possibility of introducing a disregard for low value benefits. For more information and to send us your feedback, go to the donor benefits consultation page on the CTG website. The deadline for responses to the consultation is 3 February 2017.

Meetings tracker

Consultations tracker

CTG will be preparing responses to a number of important consultations over the next few months. Our consultation responses rely on input from members and we would encourage you to send us your thoughts, and where relevant submit your own consultation response. The deadlines for forthcoming consultations are outlined below. Please send your feedback via the relevant consultation page on the CTG website or to [email protected].

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