Having previously reviewed and re-positioned the VAT treatment of membership associations various income streams we have succeeded in reducing the burden of VAT associations are charging and passing on to members who are in the main unable to recover these costs.

 

Following the overview which we carry out on the various sources of income for associations it is clear that opportunities to revisit the way in which associations treat their supplies and address their VAT treatment are extensive and which would then present a range of opportunities to gain cashflow, soften charges to members and/or generate funds to support members further.

 

We have negotiated in detail in the past with the not for profit team at HMRC on this subject and experience tells us a) these changes are entirely reasonable and can be evidenced following a full review of activities and b) would give rise to a four-year adjustment period.

 

 

To assist associations with their internal discussions and looking to undertake a review we set-out the items required to enable our review.

 

We believe, in conjunction with our tax lawyers, that the opportunity to correct the treatment of an association’s income for VAT purposes can be achieved and we would suggest the following approach:

 

 

1. Review  - based on request of initial information

2. Advise – feedback from the review process as to our recommendations

3. Implement – put into action the recommendations agreed with the association

4. Support – ongoing provision of our expert advice and review

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