CTG Newsletter – 17 May 2017
Support CTG in 2017
Thank you to all the charity members that have made a generous donation towards our work so far this year. With a busy programme of work planned in the second half of 2017, we would encourage charities that have not yet made a contribution to consider doing so in support of our work. Further information is available here, or you can request a donation form from info@charitytaxgroup.org.uk.
In addition to this valuable financial support, we are always looking for feedback from members on issues affecting them, as well as responses to formal consultations (see the tracker below for more information) and participation in working groups. We are also keen for CTG members to share examples of best practice and tax experiences (including for example, how to make best use of the Apprenticeship Levy) – if you have useful information that could benefit other charities, please share it with us so we can disseminate this information.
HMRC audits
A number of CTG members have reported that they have recently been contacted by HMRC in respect of planned tax reviews (which may include Employer Compliance (PAYE, Salary Sacrifice and Expenses), Gift Aid, VAT and Corporation Tax).
We are aware that many charities have not had a visit for many years and HMRC may in practice have very little information from previous visits, so may be starting from scratch in terms of finding out about our organisation. There is no indication that HMRC has a negative agenda towards charities, but it does appear that resources are now being dedicated to reviewing charities which they have not been to see for some time.
A charity has kindly shared the Risk Review template they were sent by HMRC before a meeting, which it may be useful for you to review. If you are approached by HMRC for an audit or tax review, please do let us know the outcome and of any issues/concerns that are raised.
Gift Aid practical issues working group
This CTG working group meets on a quarterly basis to discuss practical Gift Aid issues and share best practice. The next meeting will take place in London on 4 July 2017 and be addressed by HMRC on the inclusion of confirmation statements to ensure eligible Gift Aid claims on “online fundraising“. The group is also undertaking a review of practice across the sector in respect of “gone away” donors.
Click here for information on joining the Working Group or to submit a practical Gift Aid question.
Common Reporting Standard (CRS)
A reminder that with the reporting deadline 31 May 2017 approaching, the Association of Charitable Foundations has compiled a useful summary of the steps affected charitable trusts need to take. HMRC’s detailed guidance for charities can be read here. Alana Petraske’s helpful blog outlining her top 10 tips for charities affected by CRS can be read here.
HMRC has indicated that if reasonable steps have and are being made by charities to comply with the CRS filing requirements but it will not be possible to make the deadline, these charities should contact HMRC. HMRC will apply a light touch approach to compliance by charities with CRS reporting. They will not seek to apply penalties where charities have made efforts to carry out due diligence requirements and report accurately.
We would welcome feedback from charities on whether they have been able to meet the 31 May 2017 deadline, and, if not, what their experiences with HMRC have been to date. Please send any comments to info@charitytaxgroup.org.uk.
CTG regional meetings
CTG is hosting a series of meetings for charities and advisers exploring recent policy developments and providing practical tax updates. These afternoon events are free and will be preceded by a sandwich lunch. Register here for the next meeting, on 19 June 2017, in Birmingham, in association with BDO.
Presentation slides from last week’s meeting in Leeds (hosted by Wrigley Solicitors) can be accessed here.
Apprenticeship funding bands
HMRC has published the list of apprenticeship standards which shows the funding bands for starts from 1 May 2017. It lists the apprenticeship standards that have an approved assessment plan and are ready for employers and training organisations to use.
The frameworks spreadsheet sets out the funding bands that will apply for existing apprenticeship frameworks from 1 May 2017.
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.
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 Commentaries
Read our expert commentary pieces and leave your comments and queries:
Please contact us at info@charitytaxgroup.org.uk if you would be interested in contributing a commentary piece.
CTG website
Do you have colleagues/friends in other charities that would benefit from receiving CTG’s newsletters? If so, please share this link to a page with full details about membership. Thank you again for supporting CTG in 2017.
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.
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