Charity Tax Group logo

CTG Newsletter – 6 September 2016

Longridge VAT case

The Court of Appeal has delivered its verdict on the case of Longridge on the Thames following two previous decisions on its case by the FTT and Upper Tribunal. The Court found for HMRC, overturning two previous decisions in the charity’s favour. The case has the potential to create ramifications for a significant part of the charity community, particularly those that charge for services. You can read a detailed commentary on the case by CTG’s Tax Adviser, Graham Elliott, here.

Common Reporting Standard charity guidance

HMRC has published specific guidance for charities with AEOI reporting obligations. Full details can be found here. CTG is part of HMRC’s Common Reporting Standard implementation working group and a separate analysis of the guidance will follow in a future newsletter.

Inquiry into long-term sustainability of the charity sector

CTG has responded to the Lords Select Committee on Charities Call for Evidence as part of its inquiry into the long-term sustainability of the charity sector.  CTG highlighted the financial pressures on the sector, the importance of consultation with the sector and the need to avoid duplication of regulation.

Apprenticeship Levy consultations

CTG has responded to a DfE survey requesting comments on the Government’s proposals for funding apprenticeships. CTG’s response highlighted the general lack of apprenticeship schemes currently in operation within the sector and reiterated our earlier calls for a delay in the implementation of the Apprenticeship Levy and serious consideration of extending the scope of how Levy contributions can be used to include volunteer training costs.

CTG has also submitted a response to the Scottish Government consultation on the introduction of the Apprenticeship Levy across the UK. The consultation called for views on options for the use of the share that is to be transferred to the Scottish Government. CTG’s response can be read here.

Consultation on the Museum and Galleries Tax Relief

HM Treasury has published a consultation document setting out the details of the proposed Museum and Galleries Tax Relief, which was first announced in Budget 2016 and will be available on qualifying costs of both temporary and touring exhibitions.  Full details of the proposed scope of the relief (including definitions of museums, galleries, exhibitions and qualifying expenditure) can be found here. The deadline for responses is 29 October 2016.

Implications of Brexit for charity tax

An article by CTG Chairman John Hemming can be read here. The article was first published in the September edition of Charity Finance magazine’s Brexit special.

Speech by the FST on a tax service for the 21st Century

At today’s Annual HMRC Conference, at which CTG is represented, the Financial Secretary to the Treasury, Jane Ellison MP, has given a speech on creating a tax service for the 21st Century which ensures that tax is fair, paid and competitive. The speech includes reference to Making tax Digital and efforts to counter tax avoidance.

Revenue and Customs Brief 14 (2016)

This brief sets out HMRC’s position following the decision of the Court of Justice of the European Union (CJEU) in Fiscale Eenheid PPG Holdings BV cs te Hoogezand (C-26/12) (PPG). This case concerned an employer’s entitlement to deduct VAT paid on services relating to the administration of defined benefit pension schemes and the management of their assets. The brief announces a 12 month extension to the transitional period, which was due to end on 31 December 2016.

Consultation on the new £1 coin

The Royal Mint is assisting HM Treasury in the introduction of the new 12-sided £1 coin, from April 2017. The Royal Mint has launched a consultation that will track and assess the level of industry readiness for the launch of the new coin. This will be important for all charities handling cash, including for fundraising and retail purposes. Further details are available here.

HMRC meetings and webinars on Making Tax Digital

HMRC is running a series of webinars and meetings explaining how the Making Tax Digital proposals will work and impact different organisations. The webinars will include an overview of the current consultations relating to specific elements of the Making Tax Digital reforms. At the recent Charity Tax Forum meeting officials indicated that the government would consider an exemption for charities and possibly also charity subsidiaries if there is support for this within the sector. We would welcome your feedback on the implications of Making Tax Digital for your organisation at info@charitytaxgroup.org.uk.

Consultations tracker

CTG will be responding 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 Newsletter Archive

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

We apologise to any members that may have received recent newsletters twice. This was due to a technical glitch, but we hope that this will be resolved shortly.