HMRC Educational Campaign: Apportioning Input Tax for Small VAT-Registered Charities Under £2 Million Turnover

• HMRC’s One-To-Many team is educating small VAT-registered charities with turnovers up to £2 million
• The campaign aims to raise awareness about input tax apportionment calculations
• Many smaller charities are failing to account for non-business activities, leading to potential overclaims of input tax
• HMRC is sending concise educational emails with guidance links to selected charities
• The Chartered Institute of Taxation (CIOT) has been informed about this initiative
• The email explains the difference between business and non-business activities for VAT purposes
• HMRC encourages charities to review GOV.UK guidance on input tax apportionment
• If charities have overclaimed input tax due to non-business activities, they should notify HMRC and refer to VAT Notice 700/45 for more information on potential penalties.

Source: deeksvat.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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