Invitation to the launch of new research on the impact of VAT on charities (3 December 2020)

The Charity Tax Group (CTG) invites you to join the virtual launch of a new report proposing reform of VAT to protect existing reliefs and tackle the significant cost of irrecoverable VAT.

The report is informed by new research by London Economics, commissioned by CTG, and will take place on Thursday 3 December 2020, at 16.00.

To register for this event please contact [email protected] or complete the form below.

Overview

Regardless of the outcome of the current Brexit negotiations, VAT is facing an overhaul. The Office of Tax Simplification has called for a review of UK VAT rates, reliefs and exemptions and the influential Treasury Select Committee is reviewing the scope and effectiveness of tax reliefs after COVID-19.

What could this mean for charities? Could VAT zero rates/exemptions be subject to review? How much are they even worth? Can charities afford to incur yet more irrecoverable VAT?

Recognising this uncertainty, the Charity Tax Group has commissioned new research on the impact of the VAT system on charities. This research provides important information on the irrecoverable VAT burden facing charities as well as the value of VAT reliefs and the broader value of tax paid by charities. Until now there have been no comprehensive figures for the amount of VAT relief charities claim, nor the ability to evaluate effectively the impact of changes to those reliefs or changes to the VAT system as it applies to charities.

This new research, funded by grants from City Bridge Trust and the Paul Hamlyn Foundation, changes that and forms the basis of a new CTG Strategy Paper with recommendations for VAT reform. The modelling tool we have developed will also enable us to instantly evaluate any proposed changes to the VAT system in the future. The research is the first stage of a planned review of the socio-economic value of charity tax reliefs to the Exchequer and wider community. The Charity Commission and Charity Tax Commission have recently emphasised the importance of financial support for charities being driven by evidence of need and impact, so this research makes an important contribution to this debate.

The launch of the report will take place on Thursday 3 December 2020, at 16.00. CTG’s VAT project team, as well as the researchers from London Economics will review the main findings in the report and set out our recommendations to the Government for future VAT reform.

To register for this virtual event please contact [email protected] or complete the form below. Joining instructions will then be sent to participants.

  • One name per line - please also state which organisation you represent

CTG’s privacy notice can be read here.