CTG’s work in 2020: Review of the year

CTG continues to play an active role in shaping policy development and representing charities’ interests to HMRC and HM Treasury.

January

Charities welcomed confirmation from HMRC that, following representations by CTG and others, charitable trusts would not be required to register with the Trust Registration Service as they were a low risk of money laundering and terrorist financing. This has saved significant work for many charities.

The Government published a review into the implementation of new off-payroll working rules from April 2020. CTG was invited to participate in a stakeholder roundtable meeting at HM Treasury and highlighted practical issues facing charities, calling for a soft-landing period in terms of compliance. HMRC also published draft legislation on implementing these rules.

CTG worked closely with charities and agencies to consider a potential challenge to HMRC’s view on the the VAT treatment of social media advertising.

Members of CTG’s Future of Gift Aid working group discussed a “proof of concept” proposal with HMRC’s innovation team – the proposal is to future proof the payments architecture and HMRC systems to allow for greater automation of Gift Aid in future.

At the end of the month, the Welsh Government published a consultation on the appropriateness of charitable rates relief for private schools and hospitals.

A detailed re-cap of charity tax news, consultations and commentaries that took place in January can be found here, including updates on the Employment Allowance, Retail Discount and VAT and e-publications.