We fail to claim £600m pa in Gift Aid alone and that’s just one of many HMRC charity tax and VAT reliefs, exemptions and deductions. Not just fundraising donations, but also payroll, business rates and more, which you can claim up to 4 years retrospectively
Here’s a list below, but run ‘Tax Reliefs’ in the query system to find what you're not claiming, with links to the guidance to do so.
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If you haven’t yet registered with HMRC, here’s my guide on how to do so.
Charities can claim VAT reliefs in areas , such as advertising, disability aids, construction, talking books, drugs and chemicals, rescue equipment, medicinal products, resuscitation models, medical and scientific equipment and even lifeboats.
There are also exemptions for fuel and power, including the Climate Change Levy, a refund scheme for museums and galleries offering free admission, and charitable organisations can imported certain goods into the UK free of duty and VAT.
While you're at it, check that the VAT scheme you're using is the best one for you.
There mandatory 80% relief for charities is well known. Less well known is the additional 20% discretionary relief for charities and the 100% discretionary relief for non-profits that aren't charities.
There are also reliefs for retail, exempt (disabled people and religious use) and empty buildings, small business, rural, enterprise and hardship. Click here for the guidance.
You can claim up to £4000 in employment allowance, if you pay Class 1 National Insurance (most full time staff).
Companies pay a reduced rate of corporation tax on donations to charities.
For a whole range of guidance on charity tax, visit the Charity Tax Group.
Tax is complex and I’m neither a tax adviser, nor accountant. This is simply an informal guide and I’ve no control over 3rd party articles or websites. Seek professional guidance, if you need it.