If you run a charity – or if you are an accountant or lawyer who advises charities – you will know there is a bewildering array of VAT exemptions, VAT rates and VAT reliefs that can be found in the legislation and dotted around HMRC’s website.

As a specialist VAT adviser, I will help you navigate the VAT maze and make sure you are legal and compliant.

I can help you answer questions such as:

How do I deal with the VAT on capital projects, especially the purchase or construction of buildings?

Together, we will identify whether you can minimise the VAT charged and, where it is charged, help you maximise recovery of that VAT. If you are renting premises I can help you navigate the VAT issues arising.

Do I need to register my charity for VAT purposes?

To answer that question you need to know not only the current VAT registration threshold. You also need to know whether your activities are business or non-business. If your activities are business, then you need to know whether you fall within any of the VAT exemptions. I can help get to the bottom of this.

Is what I do classed as business or non-business?

Business or non-business is a complex distinction that can affect not only whether a charity has to register for VAT but also whether a charity can make certain purchases with or without VAT. I can help you work this out so you minimise your VAT payments while remaining compliant.

Is my charity VAT exempt?

Many charitable activities fall within the scope of the VAT exemptions, for example education, health and welfare, cultural activities and philanthropic bodies. I have not only advised clients on the accepted interpretation of these exemptions but my work has led to HMRC having to make policy changes.

How much VAT can I claim?

The distinction between business and non-business and the scope of exemptions has a major impact on how much VAT you can claim. I can advise you on this and on how to carry out your “partial exemption” calculations.

If you run a charity and need any help with VAT, please get in touch.

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