Knowing Is Half The Battle

HMRC’s One-To-Many team have issued an educational email to small VAT registered charities with turnover under £2m due to HMRC discovering a large number are not aware of their obligation to complete a business/non business apportionment calculation.

The aim of these emails is to raise awareness to those charities carry who out non-business activates - i.e. those which are free of charge - and ensure they know they are required to complete these calculations and apportion their input tax accordingly.

If you or one of your clients are concerned about the implications, we would be happy to have engage and support in reviewing the charities income and activities to confirm if such calculation are necessary.