CTG Newsletter – 11 July 2017

Andrew Jones confirmed as Minister responsible for charity taxation

HM Treasury has finally confirmed that the Exchequer Secretary to the Treasury, Andrew Jones MP, will have ministerial responsibility for charities, the voluntary sector and Gift Aid. Detailed information on all the new Ministers relevant to CTG can be found here.

Andrew Jones was Parliamentary Under Secretary of State at Department for Transport from May 2015 to 15 June 2017. He was elected the Conservative MP for Harrogate and Knaresborough in May 2010 and retained the seat in 2017 with a large majority. He has a background in sales and marketing for a number of leading retailers. CTG will be writing to him shortly, following a meeting with the new senior officials at HMRC Charities team.

There had been some speculation that Mel Stride MP, the Financial Secretary to the Treasury, would have the charities brief. While we now have confirmation that this is not the case, he does have overall ministerial responsibility for taxation and will be responsible for guiding the Finance Bill through the legislative process. He also has responsibility for policies relating to Insurance Premium Tax.

Gift Aid intermediaries guidance published

HMRC has published a new annex (ix) to its Gift Aid guidance (Chapter 3), setting out how the Gift Aid declaration authorisation process for Gift Aid intermediaries works. The process aims to make it easier for donors who give through digital channels, such as online platforms and SMS text messaging, to Gift Aid their donations, by enabling the donor intermediary to create Gift Aid declarations on the donor’s behalf for that donor’s gifts in the rest of the tax year. In most cases charities will not act as donor intermediaries, but if charities are setting up their own fundraising platform (in the JustGiving etc mould) for use by charities the guidance will be relevant.

The guidance sets out exactly what a donor intermediary is and gives worked examples of the authorisation process and details of penalties for incorrect implementation. It also sets out that the intermediary is required:

• to keep a record of the donor’s authorisation
• to keep a record of the date on which the intermediary explained the consequences of making donations with Gift Aid to the donor
• to keep a record of any cancellations of the donor’s authorisation, including the date the cancellation was received
• to issue a statement annually to donors summarising the Gift Aided donations made under the authorisation
• to keep a record of the annual statement (including date) sent to donors

 Round-up of topical stories

• HMRC has updated its entry level guidance on off-payroll working rules for public authorities to explain what a public authority is and what they need to do to follow the off-payroll working rules. Most charities will not be affected but for those that are this commentary by Susan Ball provides useful background information.
• HMRC has updated contact address and telephone number for the National Import Reliefs Unit (NIRU) within Notice 341: importing donated medical equipment free of duty and VAT
• HM Treasury has issued a reminder that old £1 coins lose their legal tender status on 15 October as it confirms that the billionth new pound has been produced. Charities have been encouraged to collect old £1 coins and make a claim under the Gift Aid Small Donations Scheme, where relevant.
• It has been reported that Jane Ellison, former Minister responsible for charity taxation, who lost her seat at the recent election, has been appointed as a Special Advisor to the Treasury, with the suggestion that she will continue to lead on the Making Tax Digital project.
• The independent Taylor Review has been published and considers the implications of new forms of work on worker rights and responsibilities, as well as on employer freedoms and obligations. This may ultimately have knock-on effects for definitions of employers and employers in tax law.
• CTG Vice-Chairman, Richard Bray, was today a signatory to a letter to the Times, co-ordinated by the Institute of Legacy Management calling on the Government to rule out completely plans to increase probate fees, which were postponed earlier this year, following criticism from charities, lawyers and peers. Further background to the issue can be found here.
  

  

Consultations and case law 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.

• Ongoing – Assessment of recent Gift Aid changes (including Charities Online, new Gift Aid Declaration and new Retail Gift Aid methods) (CTG)
• Ongoing – Insurance Premium Tax survey (CTG)
• Ongoing – Discretionary Charity Business Rates Relief (CTG)
• 30 June 2017 – VAT review (Office for Tax Simplification) OTS officials have indicated that they will accept responses into July. CTG’s response can be read here

CTG’s VAT case law tracker can be accessed here.

CTG Newsletter Archive

Members can catch up on CTG’s recent newsletters using the links below:

• CTG Newsletter – 5 July 2017
• CTG Newsletter – 29 June 2017
• CTG Newsletter – 22 June 2017
• CTG Newsletter – 20 June 2017
• CTG Newsletter – 15 June 2017
• CTG Newsletter – 9 June 2017
• CTG Newsletter – 1 June 2017

CTG Commentaries

Read our expert commentary pieces and leave your comments and queries:

• Iberdrola VAT case – A dilution of Sveda? (Dermot Rafferty) *NEW*
• VAT recovery for holding companies – MVM case and HMRC guidance (Dermot Rafferty) *UPDATED*
• Professional negligence and failed tax avoidance schemes (Sonia Ferreira)
• Definition of a ‘sport’ for VAT purposes – new AG opinion (Graham Elliott)
• Business rates valuations for museums (Colin Hunter)
• First experience of submitting a Common Reporting Standard (CRS) return (CTG)
• Construction of Relevant Charitable Purpose (RCP) buildings – position of sub-contractors (Les Howard)
• Supplies to local authorities – Healthwatch Hampshire VAT case (Graham Elliott)
• Brockenhurst College VAT case – implications for charities (Graham Elliott)
• Filing charity trading subsidiary tax returns and charity accounts (Justin Bevan)
• Adecco appeal on the VAT treatment of temporary workers dismissed (Graham Elliott)
• AG Opinions on the VAT cost-sharing exemption – implications for charities (Graham Elliott)
• Have you paid enough tax to cover your Gift Aid donations? (Kevin Russell)
• Off-payroll working: Major changes from April 2017 (Susan Ball)
• Update on “Economic Activity” and the fate of the Lord Fisher test (Graham Elliott)
• Durham Cathedral VAT case and Sveda – implications for charities (Graham Elliott)
• Hire fees for stalls at fairs – implications of the Kati Zombory-Moldovan case (Graham Elliott)
• Common Reporting Standard – Top 10 tips for charities (Alana Petraske)
• Charity Authorised Investment Fund (CAIF) launched (Grania Baird)
• Longridge on the Thames VAT case – implications for charities (Graham Elliott)
• Implications of Brexit for charity tax (John Hemming)
• Implications of the Hallé case for the philanthropic exemption (Graham Elliott)
• Helping you find your way – the new Charity Tax Group website (John Hemming)

Please contact us at info@charitytaxgroup.org.uk if you would be interested in contributing a commentary piece.

CTG website

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