Chance of a refund from the taxman

A leading financial consultancy, Numerica , is highlighting a ruling on the status of charity staff that allows charities to claim back VAT.

The VAT case in question concerned the Zoological Society of London and it was decided that cultural organisations whose strategic management is provided by unpaid trustees, volunteers or directors may not be registerable for VAT.

This means charities may be eligible to receive a refund if they have been paying VAT to HM Customs & Excise since their registration - so long as the claim was registered prior to 30 June – after that date, VAT reclaims will be limited to three years.

Vaughn Chown, Numerica's national VAT director, tax group, explains, "A cultural body is an organisation that is administered on a voluntary basis, and events performed by cultural bodies are exempt for VAT ”.

"Any VAT previously charged is recoverable from Customs & Excise, and the right of admission to events, for example orchestral performances provided by cultural bodies, is not subject to VAT."

For further information contact Numerica on  020 7467 4000 or visit their website at www.numerica.biz