VAT Updates for Not For Profit Organisations

VAT Changes for Hospices

The Budget confirmed the UK Government’s earlier proposal to provide VAT refunds for hospices and rescue charities. Draft legislation has been published, which confirms that refunds will be available for ‘palliative care charities’. These charities are defined as being: ‘a charity the main purpose of which is the provision of palliative care at the direction of, or under the supervision of, a medical professional to persons who are in need of such care as a result of having a terminal illness’. The legislation became effective from 1 April 2015 and HMRC Guidance Notice was issued on 28 April. This guidance outlines how claims can be made and the expenditure which qualifies for relief. Further information may be found here.

New VAT Guidance for Printing & Postage Services

HMRC has still to publish its revised guidance on the treatment of the supply of printed matter, which is supplied along with postage and other services. After nearly two years of discussions with the Direct Marketing Association and the Charity Tax Group a compromise on the retrospective position has been reached, however where printing is supplied as part of a single contract that includes postage and other services, this will be subject to VAT at the standard rate. This change in HMRC’s policy is due to be in place for 1 April 2015. Further information may be found here.