Charity VAT Advisor Service

Charities and not-for-profit organisations face unique VAT challenges that require specialist expertise. Acumon's charity VAT advisory service provides comprehensive support to maximise VAT savings, ensure compliance with complex charity-specific regulations, and optimise VAT recovery opportunities across all operational activities.

Our team includes VAT specialists with extensive experience in charity sector VAT, including work with registered charities, charitable incorporated organisations (CIOs), community interest companies (CICs), and disability organisations. We understand the nuances of charity VAT exemptions, zero-rating provisions, and partial exemption calculations that are critical to maximising available reliefs.

Charities benefit from specific VAT exemptions and zero-rating provisions that can significantly reduce VAT costs. Our charity VAT advisory service includes:

• Welfare Services Exemption: Advice on qualifying welfare services that are exempt from VAT, including care services, support services, and advisory services provided to vulnerable individuals
• Education and Training Exemption: Guidance on education and training services that qualify for VAT exemption, including courses, seminars, and educational materials
• Medical and Health Services: Expertise in VAT exemption for medical, therapeutic, and health-related services provided by charities
• Fundraising Income: Advice on VAT treatment of fundraising activities, including events, donations, and sponsorship income
• Zero-Rated Supplies: Identification of supplies that qualify for zero-rating, including certain printed matter, advertising services, and construction services for charitable buildings
• Disability Adaptations: Specialist advice on zero-rating for goods and services supplied to disabled persons, including mobility aids, building adaptations, and specialist equipment

Many charities are required to register for VAT, while others may benefit from voluntary registration. Our charity VAT service includes:

• VAT Registration Assessment: Analysis of whether VAT registration is required or beneficial, considering taxable turnover, exempt supplies, and partial exemption implications
• Voluntary Registration Analysis: Evaluation of the benefits of voluntary VAT registration, including input tax recovery opportunities and potential cash flow advantages
• VAT Return Preparation: Accurate preparation of VAT returns, ensuring correct treatment of exempt, zero-rated, and standard-rated supplies
• Partial Exemption Calculations: Complex partial exemption calculations for charities with both taxable and exempt activities, including use of standard and special methods
• VAT Compliance Reviews: Regular reviews of VAT compliance, ensuring adherence to HMRC requirements and identification of optimisation opportunities
• HMRC Enquiry Support: Representation and support during HMRC VAT enquiries, including preparation of responses and negotiation of settlements

Disability organisations benefit from specific VAT reliefs that require specialist knowledge. Our disability VAT advisory service includes:

• Zero-Rating for Disabled Persons: Advice on zero-rating provisions for goods and services supplied to disabled persons, including eligibility criteria and documentation requirements
• Building Adaptations: Guidance on zero-rating for building work and materials supplied in connection with adaptations for disabled persons
• Mobility Aids and Equipment: Expertise in zero-rating for mobility aids, specialist equipment, and vehicles adapted for disabled persons
• Welfare Services: Advice on VAT exemption for welfare services provided to disabled persons, including care, support, and advisory services
• Transport Services: Guidance on VAT treatment of transport services provided to disabled persons, including exemption and zero-rating opportunities

Not-for-profit organisations, including CICs, social enterprises, and community organisations, require careful VAT planning to optimise their tax position. Our service includes:

• Business Activity Analysis: Review of business and non-business activities to determine correct VAT treatment
• Exempt Supply Identification: Identification of supplies that qualify for VAT exemption, including welfare, education, and health services
• Input Tax Recovery: Maximisation of input tax recovery through accurate attribution of costs to taxable and exempt activities
• Cost Sharing Exemption: Advice on the cost sharing exemption for groups of not-for-profit organisations sharing back-office functions
• Grant Income Treatment: Guidance on VAT treatment of grant income, including identification of taxable and non-taxable grants

Effective VAT planning can significantly reduce VAT costs for charities and not-for-profit organisations. Our VAT planning service includes:

• Supply Structure Optimisation: Restructuring of supplies to maximise use of exemptions and zero-rating provisions
• Cost Allocation Strategies: Optimisation of cost allocation between taxable and exempt activities to maximise input tax recovery
• Partial Exemption Method Selection: Selection of the most beneficial partial exemption method, including negotiation of special methods with HMRC
• VAT Group Analysis: Evaluation of VAT group registration benefits for charities with trading subsidiaries
• Reverse Charge Planning: Advice on reverse charge provisions for construction and other services
• VAT Cash Accounting: Assessment of eligibility and benefits of VAT cash accounting scheme