Sign
Up To Stop VAT on Charities
Although schemes like Gift Aid
provide tax relief on donations, when it comes to spending
the money charities face a different situation.
That is why the Charities Tax Reform Group
(CTRG) has launched an online petition to the Prime
Minister asking that charities receive partial reimbursement
on VAT. Currently charities pay up to £500 million
in VAT every year, money that could be used for vital
charitable services.
Under current legislation commercial
companies are able to claim VAT back but charities
cannot, costing charities like Cancer Research UK £2.4 million a year. This
also causes problems for any charity looking for a considerable
increase in their services as every expansion is met
with an equally increased VAT bill.
If the government truly wants to
support charitable work then tackling this issue should
be high on their agenda, especially in light of recent
revelations that £2.4billion
of lottery money will be used for the Olympics in 2012.
This leaves a greatly reduced amount of funds available
to charities over the next few years.
Charities have been battling for recoverable VAT for years,
but it is still an issue that is relatively unknown to
the public with a recent MORI poll commissioned by the
CTRG showing that less than three in ten adults are aware
of this problem. Although the new petition is gathering
pace it is clear that it needs to be taken to a more public
domain so that it gains the volume of signatures and public
pressure that is needed to amend this current legislation.
To
sign this online petition click here
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