HMRC are carrying out an exercise of reviewing the accounts available on the Charity Commssion website and are writing to those charities who appear to be in receipt of income from local authorities but are not VAT registered.

In the letter HMRC asks the charity to explain why they are not VAT registered when their income appears to breach the VAT registration threshold. It may be correct for the charity not to be VAT registered as the local authority income could be a grant and therefore non-business or contractual but covered by the VAT exemptions.

If you have had one of those letters from HMRC and would like some assistance responding or if you are concerned that you should be potentially VAT registered, Sayer Vincent can help you respond. Email

source sayer invent 03.08.16