UK charities are already treated less favourably than many of their public and private sector equivalents. The Charity Tax Office figures would suggest that the new 20 per cent VAT rate would cost charities and additional £150 million. More worrying still is that small and medium sized charities will be hit the hardest.
This ignores the fact that charities have taken a recession double-whammy already – less income through donations and increased service demand because more people require their vital services.
Today Labour frontbencher, Liam Byrne is proposing an amendment with ACEVO to exempt the third sector from the VAT bombshell. This will protect the sector against the worst instincts of the LibCon government.
Progress is joining the ACEVO campaign and encouraging our members and supporters to sign a petition which will be presented to the Progress Chair, Stephen Twigg MP, this evening before the vote. Sign the petition now.
A campaign, I believe that is well worth supporting with the proposed VAT rise costing the charity sector an additional £240 to £250 million a year. In addition the rise will come in (4 January) around the same time as the 3% additional transitional relief on gift aid comes to an end (5th April). A double unpleasant whammy therefore just as the Charities struggle to maintain donations and meet additional demands on their services.
A campaign, I believe that is well worth supporting with the proposed VAT rise costing the charity sector an additional £240 to £250 million a year. In addition the rise will come in (4 January) around the same time as the 3% additional transitional relief on gift aid comes to an end (5th April). A double unpleasant whammy therefore just as the Charities struggle to maintain donations and meet additional demands on their services.
A campaign, I believe that is well worth supporting with the proposed VAT rise costing the charity sector an additional £240 to £250 million a year. In addition the rise will come in (4 January) around the same time as the 3% additional transitional relief on gift aid comes to an end (5th April). A double unpleasant whammy therefore just as the Charities struggle to maintain donations and meet additional demands on their services.
As a charity accountant I strongly support this. People do not put thier hands in thier pockets to help people living in need of support thinking that the government will be taking thier cut when the money is put to good use. Excuses have been given before that it is too complicated to reduce the impact on charities, well it’s not as complicated to sort out as the deep impact that charities will feel trying to deal with the painful cuts in basic services caused by this loss of income. Making worse a bad situation caused by this regressive tax increase. It’s another example of Cameron’s Big Society proving a lack of depth of commitment to those most in need in the UK.
I support the case providing we are referring to real charities. My concern is there are a lot of political, and special interest lobbying groups masking as charities. I have no problem some paying higher VAT or even having their charitable status taken away. The system needs cleaning up.
My concern is that the most vulnerable will be hit the hardest by all the changes and cuts about to be imposed by this coalition government.
Did I not see a press release from a top level consortium of Charities welcoming the coalition cuts in Local Government as a positive thing for the economy. Many “Charities” pay very low wages and treat their staff abysmally, we need to stop treating Charities as an alternative to proper State Provision, it isn’t. Charities are too often put forward as a palative to cuts, unfortunatly some Charities believe they are
Unfortunately there is also a lot of charities paying too much tax through sheer ignorance. We recently did a study and found that many charities were being overcharged VAT on their energy for instance. We put a simple guide together along with a printable form which charities can fill out and send to their supplier here: http://www.makeitcheaper.com/charityvat