HMRC announce changes to VAT determination

This article is a little more specific than most, but please excuse that since if it applies to you, you need to know about it.

A couple of weeks ago, HMRC announced changes in the way it determines whether an activity in a business activity or not, for VAT purposes. This can be very important as a number of charities may undertake activities, as their primary purpose, that are not businesses for VAT purposes.

Rathen than trying to explain things here, I strongly recommend that you have your finance manager, finance director, or Board member with special responsibilities for finance governance, read the HMRC article at, and seek any external advice they think appropriate, to determine if this affects you and the actions you should take.