VAT for Charities

CVC has many clients who operate in the third sector. Our charity and not-for-profit clients cover a diverse and interesting range of activities and include national bodies working in the UK and overseas plus local government organisations helping their own communities.

We give clients a balanced view when advising on their VAT affairs. We understand that VAT has to be managed with other responsibilities, and aim to give a fresh and innovative service to our clients without jeopardising existing relationships. Some of the areas we have helped with include:

• Considering opportunities to register for VAT on a voluntary basis where beneficial. Is there a legal requirement to be VAT registered?
• Reviewing existing VAT recovery methods. These may have been formally agreed by HMRC or evolved over time. Are these being calculated correctly at the right time? Do they need to be refreshed with HMRC?
• Ensuring clients take advantage of charity specific VAT reliefs, and those generally available, to ensure VAT is not incurred unnecessarily.
• Transactional issues and identifying VAT liabilities. Examples include whether an agreement entered into is a contract to supply services or constitutes grant funding.
• Review VAT liabilities. Are exemptions applied being operated correctly? The VAT treatment of fund-raising events for example.
• Are there opportunities to take advantage of concessionary treatments?
• Verifying the attribution of VAT incurred. Is VAT incurred attributed in accordance with any method agreed with HMRC?
• Capital projects and maximising the recovery of associated VAT costs.
• VAT reviews and health checks designed to identify risks and opportunities.
• Dealing with HMRC on behalf of a client, either via correspondence or attending face to face meetings and dealing with any follow-up action.
• Negotiating and agreeing VAT refunds with HMRC for charities in cases where VAT has been declared in error, or not recovered where entitlement exists.

CVC issues a regular charity specific newsletter, the latest version of which can be viewed by clicking here. If you would like to subscribe to the newsletter please contact us.