HMRC’s new policy seeks to ensure that the overall objectives of an organisation can no longer trump a ‘business’ motive behind a specific activity, writes Charlotte Black (Farrer & Co).
On 1 June 2022 HMRC issued Brief 10/2022 announcing a change of policy for determining whether an activity is or is not a ‘business’ activity for VAT purposes. In conjunction with the brief new pages were added to HMRC’s guidance in its VAT Business/Non-Business Manual.
For a charity the distinction between business and non-business activity for VAT purposes is key for two main reasons: first to determine whether the charity is required to register for VAT and charge VAT on fees generated by its activities; and secondly to assess eligibility for VAT zero rating should the charity undertake construction of a building to be used for a ‘relevant charitable purpose’. It is...
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HMRC’s new policy seeks to ensure that the overall objectives of an organisation can no longer trump a ‘business’ motive behind a specific activity, writes Charlotte Black (Farrer & Co).
On 1 June 2022 HMRC issued Brief 10/2022 announcing a change of policy for determining whether an activity is or is not a ‘business’ activity for VAT purposes. In conjunction with the brief new pages were added to HMRC’s guidance in its VAT Business/Non-Business Manual.
For a charity the distinction between business and non-business activity for VAT purposes is key for two main reasons: first to determine whether the charity is required to register for VAT and charge VAT on fees generated by its activities; and secondly to assess eligibility for VAT zero rating should the charity undertake construction of a building to be used for a ‘relevant charitable purpose’. It is...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
