Date of issue: 28th April 2005

SEMINAR HELPS CHARITIES IMPROVE THEIR UNDERSTANDING OF VAT

A wide cross section of Midlands charities and not-for-profit organisations took advantage of the opportunity to improve their understanding of the key VAT issues affecting their sector when they attended a special half-day seminar at Warwickshire County Cricket Club last Tuesday (April 26).

The event was organised by chartered accountants Clement Keys, Birmingham - recently voted Accountancy Firm of the Year (up to 10 partners) by the Birmingham and West Midlands Society of Chartered Accountants, and one of only a handful of accountants accredited by the Charity Commission to work with solicitors authorised to act as receivers and managers.

Attendees at the seminar included representatives from training organisations, sports charities, animal welfare groups and charitable arts organisations. They were joined by a couple of firms of solicitors and two banks, each of which works with charity clients in their own right.

Specialists from Clement Keys' VAT division provided a general overview of how VAT can affect charities in a lively, interactive session that made full use of recent VAT cases.

Issues under discussion included the requirements for and timing of VAT registration, how to distinguish business and non-business activities, partial exemption, cultural exemption and the VAT treatment of land and property.

Delegates also learned about the special VAT reliefs which are available to charities, leaving them better placed to assess their individual organisation's needs before seeking professional advice on how to maximise their entitlements.

"Because of the complexities relating to VAT and the not-for-profit sector, organisations tend to concentrate on meeting their responsibilities in terms of complying with the law," says Steven Simmonds, director of VAT services at Clement Keys, Birmingham.

"Our seminar clarified a number of issues, helped ease a few concerns and gave charities a chance to get to grips with some of the options available to them.

"We are delighted with the feedback and are aiming to repeat the exercise later in the year, when we will also look to build in a consideration of practical accounting for VAT within not-for-profit organisations."