Campaign: Irrecoverable VAT
Next steps in the campaign
Charities across the UK will be briefing all constituency MPs about the problems that they face with irrecoverable VAT.
All charities are being urged to include the amount of irrecoverable VAT they pay in their Guidestar entry. [Guidestar UK is a new, Government-funded initiative, to provide information on the charitable sector allowing the public to access information on all registered charities in England and Wales]
Members of both Houses of Parliament have pledged their support and further pledges are being sought. Some examples:
Lord Phillips of Sudbury:
"In all their support for the voluntary sector this Government, like its predecessor, continues to baulk at VAT reform. Until they do so, they will be giving with one hand and taking with the other. Considering the astonishing multiplier effect achieved by charities with their funds it is a continuing mystery why the Government does not bite the bullet of VAT reform."
Edward Davey MP:
"The VAT issue remains the top tax issue for charities, and it's hugely disappointing that Ministers have failed to tackle it, or even get any major movement from the Commission. We have to ratchet up the pressure."
Tony Baldry MP:
"This campaign has my full support. I would be very happy to bid for a Westminster Hall Debate on the reform of VAT on charities."
Other supportive quotes include:
Stephen Bubb, Chief Executive, acevo:
"Charities face a huge and unfair burden of irrecoverable VAT, currently estimated at over £400 million per year. While public sector providers are VAT- exempt, and private providers can recover the VAT they incur, charities have the worst of both worlds. This prevents charities bidding for contracts on an equal basis with their competitors, resulting in lower quality public services. This inequity is universal, from the daycare services provided by local charities right through to major public services like the lifeboats."
Lindsay Boswell, Chief Executive, Institute of Fundraising:
"Fundraising is an essential lifeline for UK charities and it is hugely disappointing that they are facing such large VAT costs. Donors want to see as much of their money as possible going to the cause. The issue is as simple as that. When charities are working so hard to raise money in the most efficient manner, it seems illogical that they only to have to pay such a large chunk of money back again."