Charity VAT issues – and how we can help
Charities can have varied and complex VAT issues. We have many years of experience advising a wide range of charity clients on different aspects of VAT.
Some common VAT problems we have advised on:
Grants – is it a non-business donation that is outside the scope of VAT, or is it a business payment for services?
Exemption – are services subject to the cultural, welfare or education exemptions? How should services be structured so as to fall within the exemption, or so as not to fall within the exemption to enable better VAT recovery?
Partial exemption – what method of allocating overhead is most appropriate and what records need to be kept to facilitate this calculation?
Non-business method – what method of allocating residual VAT best reflects your activities?
Subscriptions – how should these be apportioned between the different services supplied as part of the subscription and which VAT rates should be used?
Land – when should an option to tax be put in place and what are the consequences?
Capital Goods Scheme – when does this apply and what are the implications for partial exemption and the non-business method?
Non-charity social enterprises encounter many of the same issues in relation to grants and exempt supplies.
Why use Slade & Cooper for VAT advice?
We have many years of experience giving VAT advice to third sector organisations and are familiar with the kinds of problems that come up. This means that in most cases the solution can be found by drawing on our experience of similar cases. For more complex areas we take advice from one of the country’s top VAT consultants, Neil Owen