CHARITY & CIC

Following significant VAT caselaw developments in recent years, HMRC notified a major change in its VAT policy on the question of ‘Business / Nonbusiness’ with Revenue & Customs Brief 10 (2022) issued on 1 June 2022. The VAT determination of ‘Business/Nonbusiness’ is not defined in detail in the VAT legislation, is complex, and often has significant implications for affected taxpayers, such as charities, not-for-profits, funded organisations, and in HMRC’s view, some commercial circumstances. This is important as VAT

can’t usually be claimed on costs relating to Non-Business activities. On the flip side, there are some valuable charity VAT reliefs that only apply to Non-Business use by the charity, such a zero-rating new Relevant Charitable Purpose buildings, reduced rate VAT on fuel and power, and some VAT recovery rules for specific types of charity. I recently presented on this subject at the Charity Finance Summit in London with the aim of helping organisations to interpret Often has significant HMRC’s new policy, look at implications for the key points from VAT cases before and since the HMRC affected taxpayers Brief, and to identify how to navigate this issue. In summary, the 2018 Court of Appeal VAT decision in Wakefield College has established a 2-step test to determine if something is Non-business, and HMRC has based their new policy on this, as follows: • Stage 1: The activity results in a supply of goods or services for consideration • Stage 2: The supply is made for the purpose of obtaining income therefrom (remuneration)

These need to be considered on a caseby-case basis, and the VAT Tribunal has continued to use the Wakefield 2-step test in relevant cases since, applying them in a “wide-ranging objective test of economic activity”.

It remains to be seen how HMRC will seek to apply this in practice, and whether it will simplify the position for charities, but our VAT team would welcome the chance to discuss with affected charities.

For further information or advice on Charity VAT, contact Len Dean at ldean@bishopfleming.co.uk or on 01392 448803

Cornwall Air Ambulance is the charity that provides critical care to the most seriously sick and injured people in Cornwall and the Isles of Scilly. The crew attend more than 1000 missions every year, and with no direct government support towards running costs of £5 million a year, it relies on the generosity of businesses like yours to keep flying.

From events and sponsorships, to payroll giving, challenges and volunteering, there are so many ways your business can partner with Cornwall Air Ambulance.

To find out more, visit cornwallairambulancetrust.org/corporate or email fundraising@cornwallairambulancetrust.org

Meet the team from St Julia’s Hospice in Hayle. It’s thanks to you that they’re there to help terminally ill patients and their families 24/7. A long-established Cornish charity, Cornwall Hospice Care runs two adult hospices thanks in part to the generous support of the county’s businesses. Indeed, Mount Edgcumbe Hospice in St Austell, the first hospice in Cornwall, relied on local firms to build the facility that opened back in 1980.

This year the charity has launched a film and supporting booklet entitled ‘This is what we do’ aimed at explaining what it takes to fund its nursing teams, keep its 20 hospice beds open and its community services available to all. View both at www.cornwallhospicecare.co.uk www.cornwallhospicecare.co.uk

Pentreath is a Cornish mental health charity that was established over 30 years ago.

We pride ourselves on working with people on a 1:1 basis to help them achieve their personal goals, alongside mental and emotional wellbeing support, this often involves inclusion within the community, education, voluntary work and employment. Our advisors are skilled and knowledgeable as well as being friendly, supportive and inclusive to all.

Our Recovery College delivers courses across the whole of Cornwall and is open to both unemployed and employed learners. We offer courses to people who are experiencing mental ill health. These courses may help you to identify and manage your mental health challenges allowing you to live the life you want.

Further information can be found at www.pentreath.co.uk or www.recoverycollegecornwall.org.uk Please also follow us on our social media platforms Facebook, Instagram, LinkedIn and Twitter.

“Suddenly going from full time employment to sick pay put a huge strain on my family, especially when trying to manage getting to and from appointments with only one vehicle and children that needed to get to school.

“It was hard enough going through the diagnosis and treatment without having to try and work out what support we could get to help us with everyday living. We hadn’t needed benefits before so it was all new to us.

“Citizens Advice Cornwall helped us work through it all and find what we were entitled to, which saved us so much time and stress enabling us to focus on other things.” – Ian

To find out how you can help us to continue to support people like Ian across Cornwall visit citizensadvicecornwall.org.uk/support-us/

For free confidential advice on Benefits, Energy, Debt, Housing Issues, Work, Consumer Issues and more Text ADVICE to 78866 | www.citizensadvicecornwall.org.uk

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We provide advice and support to those who are facing losing their home or experiencing homelessness, and provide accommodation around Cornwall with support tailored to each resident.

Our Vocational Development Programme offers a sustainable approach to ending homelessness for good, supporting people towards employment. Shaped by the needs and interests of each participant, the programme gives opportunities with training providers and employers around Cornwall (image shows Jason at work with his new welding business).

Business Club members help our work to end homelessness by directly supporting the Vocational Development Programme.

Over a year, a monthly £100 donation could support three of our clients into employment and out of homelessness, equipped with skills, qualifications and experience.

Funds could cover: • Training needs assessment • Provision of work clothes/PPE • Work experience opportunities • Transport costs • Interview support • Digital inclusion • Engagement and wellbeing activities

Our relationship with every business is unique, developing meaningful connections with each team to find the best way for businesses to support our work. To find out about exclusive opportunities available for members, please visit our website.

Visit stpetrocs.org.uk/businessclub or call 01872 260948 to find out more.

From entry level to C-suite officers, the wellbeing of workers is an important aspect for any business. Studies have shown happier teams are more productive, so having mental health initiatives in place is vital for an organisations success and retaining top talent. One way to boost employee wellbeing is to provide specific workplace wellbeing support. Employee Assistance Programmes are designed to raise awareness of how to look after mental health and offer employees regular check-ins with mental health specialists. Another, is to nominate a Wellbeing Champion for your business, who can provide support to teams after undertaking a short course.

Sea Sanctuary offers both these services on board The ARC, a 180ft floating wellbeing hub in Falmouth.

Visit bit.ly/3yeiF1V to find out about their upcoming 2-day Wellbeing Champion course on November 22 and March 14. Alternatively, email hello@seasanctuary.org.uk or call Kim on 01326 378919.