One minute with Russell K. Moore, a partner at Saffery Champness.
How did you get into tax?
I am one of the older generation who joined the profession directly from being a VAT inspector with HMRC, or HM Customs and Excise as was then.
You are one of the leading VAT advisers to charities and not-for-profit organisations in the UK and your work is wholly dedicated to the voluntary sector. Comment on a key issue facing this sector.
I have never understood the rationale behind VAT exemption. Why prevent certain businesses (and charities) recovering the VAT they incur, when other entities who do not have to charge VAT on their supplies, i.e. zero rate activity, are not? Surely an exemption with recovery, or greater use of a zero or reduced rate, would be far more equitable and greatly reduce the burden of administration placed upon exempt business.
What advice would you give to someone new to the profession?
Having wholly specialised in one sector for the past 20 years, I would recommend this approach to any aspiring young tax professional. You need to pick a sector that you genuinely find interesting and one which has tax/VAT issues to resolve. However, to be successful, it is not sufficient to merely understand how tax impacts upon that sector. You need to be genuinely enthusiastic about the sector and its issues so that you can consider innovative yet practical solutions to the issues it faces. Of course, it is not difficult to be passionate about the voluntary sector!
If you could make one change to VAT what would it be?
The VAT system sits very uncomfortably with the voluntary sector in the UK with the result that many charities suffer irrecoverable VAT on costs incurred in providing many essential services and support to disadvantaged or vulnerable people, often young children. The complexity of the tax also requires charities to engage the services of professional advisers at a considerable cost to interpret and advise on VAT. This position cannot be correct. If I could make one change it would be to enable charities to have the ability to recover all VAT incurred in providing these health and welfare services.
What caught your eye in the latest Finance Act?
It was fantastic to see the expansion of VATA 1994 s 33 in the Finance Act to include hospices and search and rescue charities. This status enables the charities to fully recover all the VAT incurred on their non-business activity and effectively places them on a level playing field with local authority and similar providers. This is a major step in the right direction. Hopefully it paves the way for more, if not all, charitable bodies to be included in the future.
Finally, you might not know this about me but…
I left school at 16 and was in a punk rock band for six months before getting my first proper job.
One minute with Russell K. Moore, a partner at Saffery Champness.
How did you get into tax?
I am one of the older generation who joined the profession directly from being a VAT inspector with HMRC, or HM Customs and Excise as was then.
You are one of the leading VAT advisers to charities and not-for-profit organisations in the UK and your work is wholly dedicated to the voluntary sector. Comment on a key issue facing this sector.
I have never understood the rationale behind VAT exemption. Why prevent certain businesses (and charities) recovering the VAT they incur, when other entities who do not have to charge VAT on their supplies, i.e. zero rate activity, are not? Surely an exemption with recovery, or greater use of a zero or reduced rate, would be far more equitable and greatly reduce the burden of administration placed upon exempt business.
What advice would you give to someone new to the profession?
Having wholly specialised in one sector for the past 20 years, I would recommend this approach to any aspiring young tax professional. You need to pick a sector that you genuinely find interesting and one which has tax/VAT issues to resolve. However, to be successful, it is not sufficient to merely understand how tax impacts upon that sector. You need to be genuinely enthusiastic about the sector and its issues so that you can consider innovative yet practical solutions to the issues it faces. Of course, it is not difficult to be passionate about the voluntary sector!
If you could make one change to VAT what would it be?
The VAT system sits very uncomfortably with the voluntary sector in the UK with the result that many charities suffer irrecoverable VAT on costs incurred in providing many essential services and support to disadvantaged or vulnerable people, often young children. The complexity of the tax also requires charities to engage the services of professional advisers at a considerable cost to interpret and advise on VAT. This position cannot be correct. If I could make one change it would be to enable charities to have the ability to recover all VAT incurred in providing these health and welfare services.
What caught your eye in the latest Finance Act?
It was fantastic to see the expansion of VATA 1994 s 33 in the Finance Act to include hospices and search and rescue charities. This status enables the charities to fully recover all the VAT incurred on their non-business activity and effectively places them on a level playing field with local authority and similar providers. This is a major step in the right direction. Hopefully it paves the way for more, if not all, charitable bodies to be included in the future.
Finally, you might not know this about me but…
I left school at 16 and was in a punk rock band for six months before getting my first proper job.
