New monthly bulletin: Charity tax – what you need to know

The monthly bulletin “Charity tax: what you need to know”, provides a high level update on major developments in charity tax.  Regular subscribers to the CTG newsletter will receive this update, but others interested in receiving it can register by completing the form below.

Charity tax - what you need to know

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Charity tax: what you need to know this month

  • VAT deferral: Charities that deferred VAT payments in 2020 need to make a repayment by 31 March or opt-in to repay in instalments. Taking no action could result in penalties. The VAT deferral new payment scheme is now open. Details about how to make repayments can be found here.
  • Lockdown grants: Many of the grants announced by the Government to help businesses forced to close due to recent lockdowns have an application deadline of 31 March 2021. Contact your local authority ASAP to see if you are eligible and don’t miss out on the chance to claim thousands of pounds! More information can be found here.
  • Budget speculation and Tax Day: There have been indications that the Government may extend the Job Retention Scheme beyond 31 April 2021 and extend the Business Rates holiday for organisations in the retail, leisure and hospitality sectors. A Budget alert will be sent to all subscribers on 3 March 2021 and you can read CTG’s Budget submission here. In addition to the Budget, the Government will make a number of additional announcements relating to tax policy including consultation updates on 23 March 2021. Read more here.
  • COVID-19 Roadmap out of Lockdown: The Government has published the ‘COVID-19 Response – Spring 2021’, setting out the roadmap out of the current lockdown for England. Plans for exiting lockdown in Scotland and Northern Ireland are due to be published soon.  A Welsh Government plan for easing restrictions said it cannot provide dates to completely exit the alert level four lockdown. 
  • Business Rates Review: The Government has announced that the outcome of its fundamental review of business rates will now be published in the Autumn. Rates relief for charities is worth over £2bn a year. An interim update will be published on 23 March 2021.
  • Making Tax Digital for Corporation Tax: The consultation closes on 5 March 2021 – find out how charities could be affected in this HMRC commentary. We are concerned by the proposal that all charities would have to submit a corporation tax return for MTD every year. We intend to oppose this.
  • #RightNow campaign: CTG is supporting the call from the #NeverMoreNeeded campaign for an Emergency Support Fund for charities. You can join CTG’s Acting Chair Richard Bray as a signatory to the campaign letter here.
  • VAT after Brexit: CTG “Observer Member” BDO has produced a helpful series of FAQs. 
  • National Insurance contributions relief for employers who hire veterans: This new relief is available from April 2021 for a year. Read more here.
  • Gift Aid Small Donation Scheme (GASDS):  The deadline to make a GASDS claim for donations in the year ended 5 April 2019 is fast approaching. Have you claimed all you can for that year yet? For details of how to claim read here (overview) or here (detailed guidance).  Claims must be made online using the Charities Online process that is also used for claiming Gift Aid.

Follow the Charity Tax Group on Twitter @CharityTaxGroup or visit our website www.charitytaxgroup.org.uk

You can find out how to make a donation in support of CTG’s work in 2021 here.