CTG Newsletter – 27 March 2017

Tax Conference tomorrow

CTG’s Annual Tax Conference is taking place tomorrow at the Wellcome Trust.

Due to some last minute cancellations, there may be a limited number of spaces available – if you would like to be added to the waiting list please let us know ASAP at info@charitytaxgroup.org.uk or on 02072221265.

Presentation slides will be made available on the website on Wednesday morning, as well as an electronic copy of the Annual Review.

For those on Twitter the hashtag for the event will be #ctgtaxconference and the CTG account can be followed @CharityTaxGroup.

Lords Select Committee on Charities report recommends closer working with the sector and OCS on tax issues

The House of Lords Select Committee on Charities has published its report, ‘Stronger charities for a stronger society’, in which the Committee praises the important role that charities play in our society.

The report stresses that if the sustainability of charities is to be maintained, it is essential that their contribution is recognised by the Government, by the regulator and by their beneficiaries. Charities too must be certain that their governance is strong enough to enable them to face a challenging future with confidence.

CTG had responded to the Lords Select Committee on Charities Call for Evidence calling for simplifications to the tax system for charities.

Recommendations included in the report

• There should be more support for charities’ core costs and contracts should be longer wherever possible so that charities can plan for the future.
• More training and skills development for charity trustees in order to improve the strength of charity governance.
• The Government and Charity Commission should engage more effectively with the charity sector in future and to ensure that regulations and guidance make clear that these are not intended to restrict charities’ vital campaigning and advocacy roles.
• Additional support for charities with digital technology and innovation, by bringing in trustees with digital expertise, and by infrastructure bodies sharing knowledge and best practice on innovation and training opportunities.

Recommendations in the economic and tax policy section (pages 59-60)

• It is imperative for the charity sector that tax policies and processes are structured to ensure that charities are able to maximise their income and that bureaucracy is kept to a minimum.
• We welcome the Government’s changes to Gift Aid as part of the Small Charitable Donations and Childcare Payments Act 2017. We recommend that the Office for Civil Society works closely with Her Majesty’s Revenue & Customs (HMRC) to examine whether there are further changes that would help charities maximise the value of Gift Aid and minimise bureaucracy.
• We recommend that the Office for Civil Society works with HMRC to ensure that the needs of charities are high on the agenda in relation to future changes to VAT and the National Living Wage.
• We recommend that the Office for Civil Society works to improve significantly the awareness and availability of payroll giving by companies. In addition, there is no excuse for any Government department not offering payroll giving to their employees. The Government must set an example in this regard by ensuring that payroll giving is offered to staff as standard by all departments and executive agencies.

CTG’s consultation response was referenced a number of times including in the context of reform of the Gift Aid Small Donations Scheme and the need to remove VAT obstacles for charities.

Brexit

The Government has announced its intention to invoke Article 50 on Wednesday 29 March 2017.

Dates for your diary

28 March 2017

• The new £1 coin will enter circulation.
• Annual Tax Conference (Waiting list only)

29 March 2017

• Article 50 to be triggered

1 April 2017

• New rules for VAT relief on substantially and permanently adapted motor vehicles for disabled wheelchair users will become effective.
• The VAT registration and deregistration thresholds will increase.
• The rates of the National Minimum Wage will increase.
• The Museums and Galleries Tax Relief  will become effective.

6 April 2017

• New Off-payroll working rules for public sector employers come into force.
• Apprenticeship Levy payments will be collected by HMRC via PAYE from April.
• Provisions in the Small Charitable Donations Act 2017 will be effective.
• Provisions in the Donations to Charity (Gift Aid Declarations) Regulations 2016  affecting Gift Aid and intermediaries will be effective.
• The Social Investment Tax Relief will be enlarged.
• Benefits-in-kind provided under a salary-sacrifice scheme to be limited in many cases.

4 May 2017 

• Charity Tax Updates in Leeds.

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.

• Ongoing – Insurance Premium Tax survey (CTG)
• Ongoing – Discretionary Charity Business Rates Relief (CTG)
• 7 April 2017 – £300m discretionary rates relief fund (DCLG)
• 11 June 2017 – Making Tax Digital: sanctions for late submission and late payment (HMRC)

CTG Newsletter Archive

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

• CTG Newsletter – 23 March 2017
• CTG Newsletter – 21 March 2017
• CTG Newsletter – 17 March 2017
• CTG Newsletter – 15 March 2017
• CTG Newsletter – 13 March 2017
• CTG Spring Budget Update – 8 March 2017
• CTG Newsletter – 3 March 2017

CTG Commentaries

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

• Adecco appeal on the VAT treatment of temporary workers dismissed (Graham Elliott)
• AG Opinions on the VAT cost-sharing exemption – implications for charities (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) NEW COMMENTS
• Holding companies are required to raise management fees in order to ensure VAT recovery (Dermot Rafferty)
• Update on “Economic Activity” and the fate of the Lord Fisher test (Graham Elliott)
• Filing charity trading subsidiary tax returns and charity accounts (Justin Bevan) NEW COMMENTS
• 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.

Help to promote CTG in 2017

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.

Website accounts

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.