VAT is a significant cost burden to any organisation and, for charities, where VAT is only partly recoverable at best, it is a particular problem. With the standard rate of VAT now at 20%, combined with complex rules, and voluminous case law, this means that VAT can be a severe financial and administrative burden for any charity.

However, VAT can provide opportunities as well as responsibilities. There are a range of VAT exemptions for charities, which can provide significant cost savings. In some cases there apply to one-off projects, such as building development. In other cases, overhead costs can be mitigated by applying the reduced or zero rate of VAT.

When dealing with charities, I generally look at the following four areas:

• Registration for VAT
• Property development
• Input tax recovery
• VAT reliefs

Each can provide both problems and opportunities. And none should be ignored!

I have over 25 years’ experience in VAT, including a spell with HM Revenue & Customs. I also sit as a part-time member of the Tax Tribunals. I have a wide experience of business and charities, and can therefore provide expertise appropriate to any organisation.

Contact me now to see how I can help