CTG Newsletter – 19 January 2017
Engagement with HMRC and HM Treasury
Since the start of the year CTG has been representing the interests of members in a number of meetings including:
- Charity tax roundtable with the Financial Secretary to the Treasury
- HMRC Charity Tax Forum
- HM Treasury working groups on the Gift Aid Donor Benefit consultation
- Introduction to the new Head of Charities Policy at HMRC
For further information about any of these meetings please contact info@charitytaxgroup.org.uk.
Changing the tax policy making process
The Institute for Government, Chartered Institute of Taxation and Institute for Fiscal Studies have published the “Better Budgets: Making Tax Policy Better” report, which sest out 10 steps towards making tax policy better and giving us better Budgets.
The Financial Secretary to the Treasury, Jane Ellison MP (who has ministerial responsibility for charity taxation) has given a speech on tax policy making in response to the report. The Minister said that she agreed with much of the report and identified four of the key themes it raises which she believes really goes to the heart of what is needed for sensible tax policy: stability, direction, professionalism, and teamwork.
Small Charitable Donations Act 2017
The Small Charitable Donations and Childcare Payments Act 2017 is now enacted. The provisions will be effective from 6 April 2017. The Act makes a number of amendments to the legislation which underpins the Gift Aid Small Donations Scheme (GASDS), introduced in April 2013. The purpose of these changes is to simplify the scheme and extend access to smaller and newer charities. Further information is available here.
Making Tax Digital
The House of Commons Treasury Committee has published its Tenth report of the 2016-17 session, in which it has raised concerns about the cost to businesses of Making Tax Digital proposals, as well on the proposed lead time for such a fundamental change. While the Committee supports the idea of the digitisation of the reporting of tax, the report makes clear that it believes that just over a year is too short a lead time for such a fundamental change. Further information is available here. CTG’s response to the Making Tax Digital consultation, which can be read here, responds favourably to the Government’s suggestion that charities be exempt from the requirements to maintain digital records and to update HMRC at least quarterly, essentially giving a charity the chance to opt-in if it feels that it has sufficient capability and resources to do so. We also called for this exemption to be extended to wholly-owned trading subsidiaries of charities.
Prime Minister delivers Brexit speech
The Prime Minister has delivered her anticipated Brexit speech, setting out the Government’s key priorities for negotiations over the UK’s relationship with the EU, to take place once Art. 50 is triggered (expected by the end of March 2017). This was the first time that the Government explicitly confirmed its intention that the UK give up its membership of the single market. Instead, the Prime Minister spoke in favour of some form of partial customs union agreement. In the long-term this could have important implications for the VAT system. The Supreme Court has also confirmed that it is going to present its Article 50 ‘Brexit’ judgment, on 24 January 2017. Further information is available here.
VAT and e-books
The Financial Secretary to the Treasury has responded to a parliamentary question in respect of the Government’s position on the European Commission’s proposal for a Council Directive to apply zero rates on e-publications in the same way as they are applied to print publications. The Minister stated: “The Government believes it is appropriate for greater flexibility to be extended to Member States in respect of the ability to apply reduced and zero rates of VAT.” Further information can be found here.
Meetings tracker
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.
CTG also regular updates its VAT case law tracker.
CTG Newsletter Archive
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CTG Commentaries
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