Draft Finance Bill 2019-20 has been published. Measures that may be of interest to charities are summarised below (and confirm provisions announced in the Spring Statement). Consultation on the legislation runs until 5 September 2019.
- Off-payroll working rules: HMRC has responded to the consultation on the implementation of the extension of off-payroll working rules to the private sector (including charities) confirming that this will take place from April 2020. CTG has followed-up representations to HMRC about the definition of turnover and whether it should include donation and grant income or not, as this is not directly addressed in the response. HMRC has published an ‘Off-payroll working rules from April 2020’ factsheet, a policy paper, draft legislation and an explanatory note. Read more here.
- Expenses for voluntary office holders: This clause places an existing Extra-Statutory Concession on a statutory footing by introducing a new section into Chapter 8 of Part 4 of the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA”). It prevents any liability to income tax arising in respect of a payment or reimbursement of reasonable private expenses to a voluntary office-holder. CTG understands that this is a formality, but has been involved in related discussions with HMRC and others on appropriate definitions of office holders, including for Ministers of Religion. Read more here.
- Digital Services Tax: Draft legislation and guidance on the new Digital Services Tax has been published. It confirms CTG’s earlier assertions that this tax will not affect charities directly.
- GAAR: The Finance Bill includes legislation implementing procedural changes to the General Anti Abuse Rule (GAAR).
- Medical courier charities: This measure gives medical courier charities (also known as blood bikes) an exemption from Vehicle Excise Duty from April 2020. This clause aligns the VED treatment of eligible vehicles with emergency vehicles such as police vehicles, fire engines and ambulances.