CTG Newsletter – 10 January 2017
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Meeting with HM Treasury on Gift Aid Donor Benefits
A number of CTG representatives will be attending an HM Treasury working groupthis week on the latest Gift Aid donor benefits consultation. Please let us know if you have any feedback you would like us to pass on. To recap, the Government is seeking views on reforms of the current donor benefit thresholds alongside the possibility of introducing a disregard for low value benefits. For more information and to send us your feedback, go to the donor benefits consultation page on the CTG website. The deadline for responses to the consultation is 3 February 2017.
Proposed withdrawal of Extra Statutory Concessions (ESC)
HMRC has published details of four ESCs which will be withdrawn as part of the review and gives notice of their withdrawal with effect from April 2018.
- Zero-rating of central processor – Notice 701/7
- Composite rate of VAT for computer systems – Notice 701/7
- Affiliation fees for sports clubs – Notice 701/45
- C12 Retail co-operative societies: accounting periods
HMRC states that the withdrawal of concessions zero-rating of central processor and the composite rate of VAT for computer systems will have no impact on disabled groups. Both concessions are now obsolete due to advances in technology and the development of tablets and smart phones. The concession was not carried forward into current version of notice 701/7 and this has not apparently caused any problems. Eligible supplies of such systems can also be zero-rated under existing legislation. The withdrawal of the sports club concession has no impact on the VAT treatment of affiliation fees by non-profit making sports governing bodies, or similar umbrella organisations, and on non-profit making sports clubs to their members. In their case, the charge they make of affiliation fees continue to be exempt under the law.
If you are concerned about the withdrawal of any of these ESCs please let us know at info@charitytaxgroup.org.uk by the end of February. Further information can be found here.
VAT case law tracker
CTG has prepared a summary of recent and ongoing VAT litigation that we are monitoring on behalf of charities. Full details are available here.
Insurance Premium Tax increase
CTG’s Chairman has responded to a request by the sector press for comment on the recent Insurance Premium Tax increase, summarising the initial findings from CTG’s survey. We would encourage all affected charities to complete our survey, so please share this with interested clients.
Charity Commission regulatory statement
At its Annual Public Meeting, the Charity Commission published a revised version of its regulatory statement, setting out how it intends to fulfil its role under the Charities Act 2011 as amended by the Charities (Protection and Social Investment) Act 2016. CTG attended the meeting, at which the Prime Minister gave the keynote speech. Further information is available here.
Meetings tracker
- 24 January 2017 – Gift Aid working group (contact info@charitytaxgroup.org.uk for more details) [Charity members only]
- 21 February 2017 – Observer Member meeting [Observer Members only]
Consultations tracker
CTG will be preparing responses to a number of important consultations over the next few months. Our consultation responses rely on input from members and we would encourage you to send us your thoughts, and where relevant submit your own consultation response. The deadlines for forthcoming consultations are outlined below. Please send your feedback via the relevant consultation page on the CTG website or to info@charitytaxgroup.org.uk.
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