If you run a charity, you’ll want to keep your VAT liability to a minimum. So if you plan any new building projects, which at first sight appear to carry a six-figure VAT liability, it makes sense to seek expert advice.
A cultural charity based in south London was applying for National Lottery funding for the creation of a heritage centre.
I was appointed to advise on the extent of the charity’s VAT liabilities, as the new heritage centre looked set to incur hundreds of thousands of pounds of VAT.
I worked closely with the charity’s officers and the project manager to ensure that I understood the nature of the charity’s planned activities and the scope of the building works involved.
I was able to identify VAT savings and potential recoveries which more than halved the VAT cost of the project.
At the same time, I proposed an alternative funding structure which effectively eliminated the VAT cost on the charity’s capital spend altogether.
My contribution assisted the charity in securing its lottery funding while increasing the quality of the building housing its heritage centre.