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CTG Newsletter – 8 November 2016

CTG responds to Making Tax Digital consultation

CTG has responded to HMRC’s consultation on Making Tax Digital: Bringing business tax into the digital age. CTG’s response, which can be read here, supports HMRC’s proposal that there be an exemption for charities and wholly owned subsidiaries (for reasons of practicality and relevance) but calls on support and training for those charities that wish to opt in to digital reporting to HMRC.

Implications of the Longridge VAT case

CTG was today invited to comment on the wider implications of the Longridge VAT case by BBC Three Counties Radio. The show also heard from the Chief Executive of the Longridge on the Thames charity. The full interview can be accessed here.

An expert commentary on the case can also be found here.

HMRC VAT Notice on charity advertising updated

HMRC has made a minor alteration to VAT Notice 701/58: charity advertising and goods connected with collecting donations. HMRC has confirmed that the only change to the notice was the removal of the following sentence from section 2.3 – “However charities are expected to only place advertisements which comply with their charitable objects”.  This change was to clarify uncertainty with the old guidance.

The section now reads:

2.3 What types of advertisements does the relief cover

The relief covers all types of advertisements on any subject, including staff recruitment. The name or logo of the charity doesn’t need to be included for relief to be allowed. This relief doesn’t override charity law or the need to meet the British Codes of Advertising or any other relevant regulations.

Insurance Premium Tax increases

The standard rate of Insurance Premium Tax (IPT) has increased from 9.5% to 10%, as of 1 October 2016. Further information on IPT is available here.

Hire fees for stalls at fairs

CTG Technical Adviser, Graham Elliott has reviewed the decision of the Upper Tax tribunal, in the case of Kati Zomboroy-Moldovan (UKUT433) which may have implications for some charities. The full commentary can be accessed here.

HMRC Brief on treatment of VAT incurred on assets that are used by the business prior to VAT registration

HMRC has published Revenue and Customs Brief 16 (2016) on the treatment of VAT incurred on assets that are used by the business prior to VAT registration. It clarifies when, and to what extent, VAT is deductible and what to do if the correct treatment has not been applied. Further information can be found here.

Further information on the new £1 coin

HM Treasury and the Royal Mint have launched a new campaign and website to support businesses to prepare for the demise of the old £1 coin and the introduction of the new twelve-sided one, which comes into circulation in March 2017. Further information can be found here.

Small Charitable Donations Bill – Report Stage and Third Reading

This Bill is expected to have its Report and Third Reading stages on Tuesday 15 November. You can read CTG’s analysis of the Committee stage here.

New Director of the Office of Tax Simplification

The Government has today announced the appointment of Paul Morton as the new Tax Director of the Office of Tax Simplification (OTS). Paul succeeds John Whiting, who is retiring as OTS Tax Director, a position he has held since the OTS was established in 2010.

Consultations tracker

CTG will be considering 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: