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CTG Newsletter – 9 August 2017

Charity advertising

CTG has become aware of a number of challenges to the zero rating of advertisements placed by charities on third party websites (especially via social media).  If this happens to you please let us know by e-mail at info@charitytaxgroup.org.uk.

In the meantime, we are working with key stakeholders to take steps to understand the reason that these challenges have been made, so that we can best help to protect this important zero rate relief.

Transferring Apprenticeship Levy funds

The Education and Skills Funding Agency is currently investigating a potential feature within the apprenticeship service: A way for levy-paying employers to transfer apprenticeship funds to any other employers. The consultation will close on 18 August 2017. Further details, including how to respond can be found here.

eBay to introduce VAT charges for UK sellers

eBay has confirmed that it will start charging 20% VAT on its fees to businesses trading in the UK, in line with HMRC’s tougher stance against online traders who fail to register for VAT returns

The measure, effective from 1 August 2017, follows a restructuring by eBay resulting in UK customers no longer contracting with eBay Europe S.a.r.l (its Luxembourg entity) but with eBay (UK) Ltd. Further information can be found here.

Charities that sell directly through eBay should note this additional cost. Charities may also wish to monitor the knock-on effect this has for donors that donate all or part of their proceeds from eBay sales to charities.

Round up of topical issues

  • Charities Online: HMRC has updated the list of commercial software suppliers for Charities Online.
  • VAT Appeal Updates: HMRC has updated its lists of cases where it has: lost at the First-tier Tribunal that could have a wider impact; lost in the Upper Tribunal or higher courts; or taken a decision about whether to appeal.
  • Insurance Premium Tax (IPT): HMRC has updated its basic guidance to reflect the recent increase in IPT to 12%.
  • General Anti-Abuse Rule (GAAR) Opinions: The GAAR Advisory Panel has published opinions on employee rewards provided as gold bullion. These opinions can be used together with the General Anti-Abuse Rule (GAAR) guidance to help  recognise abusive tax arrangements.
  • HM Treasury Annual Report and Accounts 2016-17:  The Annual Report and Accounts have been published and can be read here.
  • Data Protection: DCMS has published a response to the recent consultation on GDPR – A New Data Protection Bill: Our Planned ReformsCTG’s response to the original consultation can be read here.
  • Community Infrastructure Levy (CIL): Representatives of the farming industry have made representations to the Housing and Planning Minister Alok Sharma calling for new farm buildings to be exempted from any replacement to CIL. The independent CIL review team has proposed a new Local Infrastructure Tariff, with “no or few exemptions”, with Government due to respond this autumn. CTG is working with charity members and other charity bodies to prepare our own response highlighting the importance of any successor tax having equivalent protection for charities. More background on the issue can be found here.

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