Indirect Tax in the Charity Sector

Mazars was founded over 100 years ago providing specialist advice to charities. A large percentage of our client base is within the charity sector and we are recognised as one of the UK’s leading charity specialists. Our indirect tax team provide VAT advice and support to charities on a regular basis, and within the indirect tax team we have charity specific specialists, including a VAT partner that is a member of the Charities VAT Expert Group.

Complexities in VAT are often around partial exemption, non-business vs business, capital goods scheme, and exempt supplies such as welfare and education.  Charities are usually involved in transactions that fall within all of these areas and it is therefore understandable that Charities require specialist support to ensure they meet VAT compliance requirements and avoid VAT risks.

At Mazars we can also assist Charities to maximise the VAT reliefs available to reduce the VAT liability and increase cash flow.

We focus on working with our clients in partnership, acknowledging the Charity’s objectives and priorities and tailoring our services to our client’s needs.

Below is a list of just some of the areas that Mazars has in depth expert knowledge which enables us to establish long term trusted relationships in the charity sector:

  • Review and negotiate special partial exemption methods with HMRC;
  • Review and establish the most appropriate fair and reasonable capital goods scheme adjustment calculations;
  • Expert knowledge in land and building VAT implications and the impact on charities, advising charities how to structure transaction to result in the most cost effective VAT position, including transfer of going concerns and the option to tax;
  • Review of non VAT registered charities to establish the pros and cons of VAT registration;
  • VAT compliance and health check reviews;
  • Up to date knowledge of case law and VAT updates that impact the charity sector.