2018 Budget summary for charities
The Chancellor announced the government’s budget on 28 October 2018. It is great to hear that the Chancellor plans to help charities by increasing the annual limit for trading in a charity from £50,000 to £80,000 turnover (for charities with income over £200,000). This takes it very close to the VAT registration threshold of £85,000 so almost aligning these which is helpful.
In addition the decision to allow charities operating Retail Gift Aid to write to those whose donations raise under £20 a year, just once every three years rather than annually as at present, will save charities many thousands of pounds in administration and postage costs. Charity Tax Group was hoping the requirement to write would be removed altogether for these donors. However once every three years is much better than annually and HMRC does remain concerned that, with over 40% of adults not being tax payers, too often gift aid is claimed by non-taxpayers.
Click here to download our summary of the key changes affecting charities and social purpose organisations.