- HMRC’s One-To-Many team is educating small VAT-registered charities with turnovers up to £2 million
- The campaign aims to raise awareness about input tax apportionment calculations
- Many smaller charities are failing to account for non-business activities, leading to potential overclaims of input tax
- HMRC is sending concise educational emails with guidance links to selected charities
- The Chartered Institute of Taxation (CIOT) has been informed about this initiative
- The email explains the difference between business and non-business activities for VAT purposes
- HMRC encourages charities to review GOV.UK guidance on input tax apportionment
- If charities have overclaimed input tax due to non-business activities, they should notify HMRC and refer to VAT Notice 700/45 for more information on potential penalties.
Source: deeksvat.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
