We were beginning to think that HMRC/Government had lost any appetite for introducing an easement for businesses donating goods to charity. So we are very pleased that the genie has come out of the bottle with a consultation on the VAT Treatment of Business Donations of Goods to Charity. CTG has been working with other parties including the CBI and The British Retail Consortium to secure an update to current VAT rules, which relieve VAT on goods donated to charity for sale or export, but not where those goods are to be used by the charity in delivering its objectives.

This means that businesses can incur a cost of donating surplus goods to charities, and this is clearly a disincentive. Allowing businesses to donate goods without paying VAT, helps you achieve your aims and reduces waste. If you receive donated goods, or would like to do so, for use of your beneficiaries, please do respond to HMRC using the online form. The survey is quite long because it is working through the practicalities of how charities receive donations and how HMRC could administer the relief but there is no requirement to answer all questions, only those that are relevant to you. Change is more likely to happen if more people respond to this, so please do find the time if you can. The consultation is open until 21 July.