CTG Newsletter – 17 January 2018

Healthwatch Hampshire VAT case

Following the recent decision in the Healthwatch Hampshire VAT case, we understand that HMRC has written to certain Healthwatch charities and NFP providers in respect of its interpretation of the decision. It must be stressed that this is private correspondence and sets no precedent for organisations that have not received it and cannot be used in argument with HMRC. However, it is of general contextual interest. CTG’s Technical Adviser, Graham Elliott has written a second briefing, providing further information, which can be read here.

Get involved

CTG members are encouraged to:

• Provide feedback on the draft legislation and VAT Notice that will introduce Making Tax Digital for VAT (the deadline for comments is 9 February 2018). CTG is meeting HMRC officials on 18 January 2018 and this is your chance to have your questions answered.
• Provide feedback on two key Gift Aid issues on which CTG has been asked to provide proposals to HMRC:
  • the impact of the General Data Protection Regulation (GDPR) on Gift Aid, particularly in relation to the future of enduring declarations
  • what the future of Gift Aid looks like, considering issues such as how to maximise Gift Aid in the face of digital transformation.
• Save the date of the Tax Conference – 15 May 2018.  We would welcome feedback from members on previous events and any suggestions for speakers or topics at next year’s Conference via the comment box here.
• Join the new Business Rates working group or tell us if you receive any correspondence from local councils reviewing any of your existing reliefs. The group will be considering a response to the consultation on business rates in multi-occupied properties (the deadline for comments is 23 February 2018)
• Join the Gift Aid practical issues working group in 2018 – read why here! There is now a total of 55 charity members.
• Help us to improve the Gift Aid donor benefits guidance – submit feedback here
• Share their feedback on how their charity has been affected by the Apprenticeship Levy so far (e.g. cost so far, amount of levy used or expected to be used).
• Share their experience of a practical or technical charity tax issue by writing a commentary
• Share details of any challenges to VAT zero rating on advertising by agencies
• Share your experiences of registering with the Trusts Registration Service
• Register for the next Observer Member meeting on 1 March 2018 (Observer Members only)
• Follow us on Twitter @CharityTaxGroup

Send any comments to info@charitytaxgroup.org.uk or call the Secretariat on 020 7222 1265.

Round-up for topical developments

• Accounts tagging: HMRC’s XBRL guide for UK businesses has been updated to include XBRL to iXBRL conversion and format information.
• Serial Tax Avoidance Regime: HMRC has published technical guidance on the Serial Tax Avoidance Regime
• Finance (No.2) Bill 2017-19: The Bill was considered in a Committee of the whole House and no amendments were made. The Public Bill Committee has now completed its work on the remaining Bill and has reported the Bill with amendments to the House, and is no longer able to receive written evidence. The Bill will next be considered at Report Stage and Third Reading. The date for these remaining stages has not yet been announced.
• Charity Register Statistics: The Charity Commission has published the annual Charity Register statistics. The figures are based on the annual gross income reported by charities in their annual returns.
• The Charities (Protection and Social Investment) Act 2016 (Commencement No. 2 and Transitional Provision) Regulations 2018 have been published. These Regulations bring the remaining provisions of the Charities (Protection and Social Investment) Act 2016 into force.

CTG website and newsletters

Charity and Observer Members are reminded that their membership is on an organisational basis and that there is no limit of the number of subscribers to the website per organisation. If you think a colleague would benefit from getting access to the website and newsletters directly, please encourage them to register online at www.charitytaxgroup.org.uk/join-us/ selecting your organisation from the drop-down box.

CTG continues its efforts to expand the number of charity members and would be very grateful if you could share details of membership with any charity sector contacts. Further information can be found here while a promotional leaflet can be downloaded by clicking on the image below.

 CTG Newsletter Archive

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

• CTG Newsletter – 11 January 2018
• CTG Newsletter – 9 January 2018
• CTG Newsletter – 3 January 2018
• CTG Newsletter – 20 December 2017
• CTG Newsletter – 18 December 2017

CTG’s VAT case law tracker has also been recently updated.

Expert Commentaries

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

• Healthwatch Hampshire – follow-up news (Graham Elliott)
• Yorkshire Agricultural Society VAT case – certain free events are not economic activities (Dermot Rafferty)
• LIFE Services VAT case on the welfare exemption (Graham Elliott)
• 2017 Gift Aid round-up (Richard Bray)
• VAT case relating to ‘single supply’ and zero rated printed material (Graham Elliott)
• Corporate Criminal Offence – implications for charities (Ian Short and Tania Dimitrovich-Archer)
• Definition of a ‘sport’ for VAT purposes – English Bridge Union case (Graham Elliott)
• Relevant Residential and Relevant Charitable buildings: Clawback provisions – Balhousie Holdings case (Graham Elliott)
• Proposed new penalties for participation in VAT fraud (Edd Thompson and Juliet Bailey)
• Summary of recent VAT cases on partial exemption, sports supplies & charitable annexes (Graham Elliott)
• Benefits of joining the CTG Gift Aid practical issues working group (Keren Caird and Donna Perry)
• Iberdrola VAT case – Implications for Sveda? (Dermot Rafferty)
• Is a CASC a Charity (for Tax Purposes)? (Graham Elliott)
• Charity VAT Recovery – The Road Not Taken (Graham Elliott)
• VAT recovery for holding companies – MVM case and HMRC guidance (Dermot Rafferty)
• 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)
• 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.