VAT Rules for Charities and Not-for-Profit

We understand that VAT is only one of many matters that need to be managed with other responsibilities and we aim to provide an innovative service to our clients without disturbing existing relationships.

Some of the areas we can help Charities and Not For Profit Organisations include:

• Considering whether or not registering for VAT on a voluntary basis would be beneficial assuming that there is not a legal requirement to be VAT registered, and other VAT rules for charities.
• Reviewing existing VAT recovery methods. These may have been formally agreed by HMRC or evolved over time although in either case they can be challenged at any time by HMRC. Are these being calculated correctly and at the right time?
• Ensuring clients take advantage of charity specific VAT reliefs, and those generally available, to ensure VAT is not paid unnecessarily.
• Understanding VAT rules for charities, and considering VAT liabilities of income to decide whether an agreement entered into is a contract to supply services (possibly liable to VAT) or is grant funding or a donation.
• Reviewing VAT liabilities to ensure that any exemptions are being operated correctly.
• Considering whether there are 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?
• Maximising the recovery of VAT on costs associated with capital projects.
• Dealing with HMRC on behalf of a client, either via correspondence or attending meetings and dealing with any follow-up action.
• Negotiating and agreeing VAT refunds with HMRC in cases where VAT has been declared in error, or not recovered where entitlement exists.
• Dealing with VAT Appeals for registered charities

Peter has acted as a VAT consultant to a number of National not-for-profit and charity clients as well as to some other local organisations.