CTG Newsletter – 13 December 2016
Apprenticeship Levy guidance on reporting payments
HMRC has published a helpful guidance note on the Apprenticeship Levy with a particular focus on how to report payments. While it does not introduce any new policy, it bring all the relevant information on Levy payments together in one place. Further information can be found here.
Gift Aid donor benefits rules
Members will recall that HMRC is currently running a consultation on the Gift Aid donor benefit rules, specifically in relation to potential review of the current bands/thresholds and the possibility of introducing a low-value disregard. Further information on the consultation is available here. CTG representatives have been invited to participate in meetings with HM Treasury officials in mid January as part of the consultation process and we would welcome feedback from members before then. If you would be interested in being part of a working group on this consultation please let us know by e-mailing info@charitytaxgroup.org.uk.
Small Charitable Donations Bill
The Small Charitable Donations and Childcare Payments Bill 2016-17 has now finished its passage through the House of Lords. Having been certified by the Speaker as a Money Bill, there was no scope for any further amendments, and all four Lords stages took place in the same session. The Bill will now receive Royal Assent, with the provisions to be applicable from April 2017. We will continue to keep members up to date on opportunities to comment on further proposals and guidance relating to the Scheme. During the Second Reading Lord Young of Cookham announced that the Government was going to launch a communications effort to raise awareness of the scheme and hopefully improve take-up. Further information can be found here.
VAT waived on charity Christmas singles
Following the announcement last week that VAT on sales of the X Factor winner’s charity single would be waived the Chancellor has announced that VAT will be waived on sales of Christmas single in memory of late MP Jo Cox. A charitable donation equivalent to the VAT will be given to the foundation set up in her memory. Further information can be found here.
Insurance Premium Tax survey
One of the headline announcements in the Autumn Statement was that the standard rate of Insurance Premium Tax (IPT) will rise to 12% from 1 June 2017 (it is currently 10%). Charities do not benefit from an exemption so will be impacted. We encourage all members affected by this increase to complete this short survey. 76 charities have already responded providing vital information on the scale of the impact on charities.
Following the collection of this data, CTG will be considering further representation to Government and the insurance sector about ways to mitigate the adverse impact of these recent changes. We met with representative of the Association for British Insurers (ABI) earlier this month and other meetings with affected stakeholders are planned.
HMRC has published a policy paper confirming the increase to 12%. The Government estimates that the increase will be worth £855m each year by 2021-22. Its policy objective is simply that it is a revenue raiser for the Exchequer.
Penalties for participating in VAT fraud
HMRC has published a summary of responses to the consultation on penalties for participating in VAT fraud. CTG has welcomed the Government’s commitment to tackling this issue but questioned whether charity trustees should be exposed to risk if the executive or other employees undertake fraud or unwittingly allow the charity to be used in fraud. CTG will continue to highlight these concerns as the penalty is introduced.
Consultations tracker
CTG will be considering responding 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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