Call for end to not-for-profit tax confusion
Howard Lake | 6 September 2005 | News
VAT experts at accountants UHY Hacker Young are calling for an overhaul of the ‘outdated’ and ‘unfair’ test system used to determine whether not-for profit organisations are entitled to tax reliefs.
Not-for-profit educational, sporting and cultural organisations have to take a special test to qualify for the relief. However, the test for each type of body is different.
Simon Newark, not-for-profit expert at accountants UHY Hacker Young, said: “Having different rules for each type of organisation is ridiculous. The rules are frequently updated but it would make it a lot easier for all charities if there were clear, uniform rules for everyone.
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“EU law gives member states the opportunity to choose from a list of conditions to qualify for tax relief. Rather than choosing one definition of ‘not-for profit’ and giving all organisations the same
qualifying test, the UK has made it much more complicated by choosing
different conditions for each type of organisation.”
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.