Influencing policy on charity taxation

CTG’s work often takes place behind the scenes, so here is an update on our policy work being undertaken on behalf of charities:

  • Participating in three meetings with HMRC officials to discuss Making Tax Digital (MTD). This has included discussions on charities’ readiness for the digital link requirements and measures to support fundraising branches and volunteers to comply with MTD.
  • Reviewing draft updated guidance on the Gift Aid donor benefit rules, as part of an HMRC working group
  • Launching a working group to review the future of Gift Aid, designed to report interim conclusions to HMRC later this year.
  • Providing technical feedback on the draft proposals recommended by the Charity Tax Commission. CTG is part of the Advisory Group to the Commission and has welcomed the launch of the report.
  • Responding to consultations on issues including business rates in Scotland and Northern Ireland, the extension of IR35 to the private sector and the implementation of the Fifth Money-Laundering Directive (5MLD).
  • Briefing HMRC on the practicalities of how digital advertising works. Following representations from CTG, HMRC is seeking further internal legal opinion to inform their thinking on the correct VAT treatment of digital advertising.
  • Briefing the Department for Exiting the European Union (DEXEU) on CTG’s forthcoming VAT research project.
  • Reviewing the potential implications of the recent University of Cambridge VAT case on investment management fees, with the CTG Observer Members, with a view to future discussions with HMRC officials to determine their next steps.
  • Discussing ways that the HMRC guidance on grants and sponsorship could be improved, with charity VAT experts. HMRC officials have confirmed that they would be willing to review changes proposed by CTG.
  • Discussing social investment with DCMS officials, including the future of the Social Investment Tax Relief.
  • Engaging with the Shadow Minister for Civil Society’s team, which has requested briefing on tax policy priorities for charities.

If you would like to know more about any of this work, or play a more active role in our lobbying work and engagement with Government, please contact [email protected]. We are also keen to receive feedback from members on their current tax policy priorities so we can target CTG’s work most effectively, particularly in the lead-up to Budget 2019.