Most people believe that charities do not pay tax... if only that were the case.
Charities benefit enormously from the range of tax incentives on giving to charities, particularly Gift Aid. What is not often understood is that charities incur substantial amounts of tax when they spend the money that is generously donated to them. The Charity Tax Group (CTG) began life in 1982 as the Charities' Tax Reform Group (CTRG). Set up to make representations to Government on charity taxation, CTG now has over 400 members of all sizes representing all types of charitable activity.
We recently conducted a study on behalf of CTG that revealed that the present tax system costs charities over £1 billion a year in VAT that they cannot recover. We also estimate that the recent rise in the standard rate of VAT to 20% will cost charities an additional £145m a year in irrecoverable VAT. This is because the VAT system, which is based on the EU's Sixth VAT Directive, treats charities as final consumers - even when they are not.
Our latest project, generously supported by the Nuffield Foundation, is the Charity Tax Map - the first-ever systematic, detailed study of the impact of the tax system on the charity sector - which we hope will draw politicians' and practitioners' attention to the need for simplification in the charity tax regime, highlight the disproportionate costs attached to some areas of charities' work and, above all, provide a basis for rational, evidence-based discussion of the problems.
CTG has become the leading voice for the sector on this issue. We have persuaded successive Governments to introduce a range of tax reliefs and, just as important, have campaigned successfully to protect existing concessions.
Join us. Through CTG, you can:
- be part of the sector's leading authority on tax and charities
- help to reduce the sector's irrecoverable VAT bill - now £1 billion a year
- improve tax concessions on giving
- identify new ways of helping the sector
- obtain technical advice from the helpline operated by CTG with the help of Peter Jenkins Associates
- help to protect existing reliefs, which remain under threat from Europe
CTG - the leading voice on charity taxation