Charity Tax Made Simple

Many people believe that charities don’t pay tax – but that’s just not the case! Whilst charities do benefit from a range of tax incentives on charitable giving - particularly from Gift Aid - there are still at least 18 different taxes that can affect them. The Charity Tax group have produced a Charity Tax Map, which provides an explanation of the tax system provisions charities have to comply with, and the applicable reliefs. It’s a great resource which allows charities to search for information based on the types of taxes they pay or the activities they undertake. Still, tax can be complicated if you’re a charity, so that’s why we’ve organised an interactive seminar on 13 June 2017 to help you develop a good understanding of the basic rules governing charity taxation, and allows you to suggest topics for discussion. We’ll be looking at Gift Aid and charitable donations, and how important it is to understand Gift Aid rules and donation eligibility criteria. The seminar will also cover VAT - a complicated tax area that charities often overlook – and the number of specific VAT reliefs and exemptions that are available for charities, which is important as while charities are generally subject to the same rules as any other organisations, if they don’t get them right it can have significant financial consequences. We’re also going to look at charity trading and find out why and when charities need to set up a trading subsidiary. Often trading subsidiaries are used to carry out non-charitable trading in order to raise funds for a charity, but they can also be used to carry out charitable activities in a ring-fenced vehicle to avoid risk to the charity’s assets. With a continuing squeeze on charity income, you really need to know how to maximise your revenue so you can do the best work you can, so if you’re a staff member working within a charity, or a trustee who needs to ensure you remain compliant with tax law, come and join us in June in Edinburgh.