CTG Newsletter – 26 October 2017
Commentaries on recent VAT cases
CTG’s Technical Advisor, Graham Elliott, has prepared two new commentaries following recent VAT cases:
CTG secures confirmation from HMRC that eligible charities can continue to submit accounts in PDF form
HMRC’s latest Agent Update includes notice that, from 1 November 2017, HMRC will reject all accounts not in iXBRL format (including those PDF format), unless a dispensation by HMRC has been granted.
CTG has written to HMRC officials to confirm that the exemption for small charities is a relevant HMRC dispensation. We also sought clarification that it remains the case that no computation is required at all where the CT600E (Charities/CASCs) supplementary page of the return is completed.
HMRC officials have responded to confirm that:
“Under our current processing rules there is no intention to change the dispensation arrangements currently in place for charities. We will still allow smaller charities to submit returns with accounts in PDF format and if a supplementary page CT600E is submitted then computations are not required. So no change to how we operation online filing for charities and there are no plans to do so.”
Full details can be found here.
CTG events
Tax Updates in Cardiff and Manchester
CTG has organised tax update meetings for charities and advisers this November, in Cardiff and Manchester. Both sessions will review recent policy developments and providing practical tax updates and will include a presentation on recent Gift Aid developments, by Steve Carroll, from HMRC’s Charities Outreach team.
Other topics to be covered will include: Implications of Brexit for the sector, review of recent VAT case law, Making Tax Digital, Business rates developments and Autumn Budget 2017.
Both seminars will take place from 14:00 to 16:00, with a sandwich lunch available from 13:00. You can register for each event by following the link below:
Observer Member meeting
CTG’s Observer Members can register for the next meeting on 31 October 2017 here.
Round-up of other topical developments
- CASCs membership subscriptions: HMRC has made a minor change to Chapter 3.37 of the Gift Aid guidance to confirm that CASCs are not eligible to claim Gift Aid on membership subscriptions. We understand from officials that this clarification has been made as the point was raised in a recent tribunal case and it was felt HMRC’s guidance could have been clearer on this point.
- Payroll software update for Benefits in Kind: HMRC has confirmed that upcoming changes to the way Benefits in Kind (BiKs) are valued where there is an optional remuneration arrangement (OpRA) means that employers will need to update payroll software for P11D and P46 (Car) reporting.
- Tax Gap reduction: HMRC has confirmed that the difference between the tax due and that collected – known as the ‘tax gap’ – fell to a record low of 6% in 2015 to 2016. HMRC has highlighted the success of anti-avoidance mechanisms and moves to online systems as contributing to this reduction.
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.
Website, newsletters and supporting CTG
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 relies on donations from its charity members to fund the work it does on behalf of the sector. If your organisation has not yet made a contribution to our work in 2017, please consider doing so – further information and a donation form can be found here.
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