VAT SERVICES
(scotland) Limited
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£80k VAT saving

Our intervention assisted a charity client with an overall c. £80k VAT saving on its construction project.

A Community Club client, a local charity, was altering and extending its existing sports club building. The Club spoke to HMRC’s helpline and were advised by HMRC that no VAT recovery was possible on the various construction works amounting to c. £550k, plus VAT.

Following an introduction from CEiS, the UK’s largest social enterprise support agency, we undertook an on-site review of the property and prepared a detailed case for VAT recovery for submission to HMRC.

This resulted in a successful outcome that benefitted the charity with a c. £80k VAT saving that the club intends to reinvest in other areas of its activities for the benefit of its local community.  

Our advice was crucial in securing future of charity at risk of being wound up

We were approached as the charity had just breached the VAT registration threshold. Additionally, the charity’s projected forecasting made concerning reading as it showed that by adding VAT to its supplies, it would make the charity uncompetitive.

Such a position would not only lose sales but, importantly, grant funding was to be restricted, if its level of trading meant it had to become VAT registered.

A solution was to approach HMRC for an exception from VAT registration for the charity and set up a trading subsidiary for the business activities.

After negotiation with HMRC, this was all achieved and the charity did not have to be wound up.   

Guiding charity client through minefield of VAT exemption reliefs

Our client, a charity, was arranging a conference for a global audience and was concerned with ensuring  the correct VAT liability was applied to its sales invoices to its UK, EU and non-EU participants.

We assisted the charity by guiding it through the VAT exemption reliefs and the VAT place of supply of services rules.

The charity was delighted with the clarity of the VAT advice, given the complexity of this particular case.