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 https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2022-vat-business-and-non-business-activities/vat-business-and-non-business-activities, and seek any external advice they think appropriate, to determine if this affects you and the actions you should take.