Le Tour de Tax

Claire Welling, Leeds Community Accountant at WYCAS, gives a topically themed review of the Charity Tax Group briefing, held in Leeds on 9 July 2014.

Le Tour bunting

The Charity Tax Group represents charities' interests in tax matters and does vital work to simplify systems and reduce tax costs for charities.

Yellow Jersey

The Yellow Jersey as the leader of the field is awarded to Gift Aid.  If your charity is not claiming Gift Aid on donations, check if any are eligible. The claim process is now entirely online and 64,000 charities are registered to claim online. The briefing covered data issues, with claims that HMRC will only liaise with the authorised official and that the HMRC Charities Helpline (tel. 0300 1231073) is easiest to get through between 8am and 10am. 

King of the Mountains

The polkadot King of the Mountains is awarded to the tax implications of winning a contract. It is often difficult to distinguish between a grant and a contract, but if judged to be a contract (and so business income) which exceeds the VAT threshold of £81,000 in a 12 month period, the recipient must register for VAT with HMRC. Then when you invoice for your VATable service, the first 20% must go to HMRC as VAT.  A significant impact on the finances!

Green Jersey

The Green Jersey for the leader in the points competition is Business Rates relief.  More responsibility for administering business rates relief is passing to local government and they may take a harder line in judging whether the premises is used wholly or mostly for the delivery of charitable activities. 

White Jersey

The White Jersey for the best young rider may be an emerging possibility of a national VAT refund scheme for charities. The EU has recently confirmed there is no EU legal obstacle to introducing this. The Charity Tax Group continue to ask the UK government to introduce this. 

Find out more

To request more information on any of these issues, please comment on this blog below. We wouldn’t want a crash like Mark Cavendish in Harrogate...

Comments (3)

  1. kathy faulks:
    Jul 16, 2014 at 12:48 PM

    Bon Bon tres and more.
    This is the most creative blog I have ever read.

  2. Natasha :
    Jul 16, 2014 at 07:20 PM

    Great blog Claire, if anyone has enjoyed this why not see what training Claire is delivering in some of these areas. Find them in the Training section of this website

  3. Laura McFarlane-Shopes:
    Jul 17, 2014 at 11:45 AM

    This is brilliant! Thanks for sharing this info in such a fun way. I think I have learned both about tax and le tour!

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