Taxation & VAT
It is a common misconception that profits made by a charity are automatically exempt from tax. If your charity carries out certain trading activities it may be subject to corporation tax.
If you are an individual and are considering giving to charity you may be able to take advantage of significant tax breaks. Why not contact Revell Ward to keep up to date with the most recent tax developments.
Click here to view our Tax services
VAT
VAT is a major issue for most charities and not for profit organisations.
There is no general relief from VAT for charities on the goods and services that they buy in. However, because most of their income is outside the scope of VAT, charities are often unable to reclaim the VAT that they pay on purchases. As a result, VAT represents a major cost to most charitable organisations.
We offer a range of VAT advisory services to help charities manage the impact of VAT including:
- Review of organisation structure
- Advice on VAT registration
- Review of income and expenditure codes
- Advice on charitable reliefs
- Planning to manage the impact of major transactions
- Negotiation of VAT recovery methods
This advice often results in significant VAT savings for our clients.