Charity News: VAT update

Charity News: VAT update
Charity News: VAT update

Charities that are registered for VAT should be aware that from the start of this year the way penalties are issued for submitting late VAT returns and for paying VAT late have been amended. A new points-based system has been introduced which is designed to be more lenient for the occasional error but still penalises those who repeatedly fail to comply with their obligations. Changes have also been introduced to the way interest is charged on late payments and repayments of VAT.

Details: VAT penalties and interest

VAT Notice 708 Buildings and Construction has been updated to provide clarity on the use of a building as ‘village hall’ in respect of the Relevant Charitable Purpose relief for constructing buildings for certain charitable purposes, setting our key conditions that must be adhered to if the relief is to be available so that construction work can be zero-rated.

Details: Buildings and construction (VAT Notice 708)

There has been confirmation that the Listed Place of Worship Grant Scheme will be extended through to 31 March 2025. The scheme provides grants that cover the VAT incurred in making repairs to listed buildings in use as places of worship, supporting the effective conservation of these sites.

Details: Religious Buildings: VAT

Our full Charity Newsletter can be found here.

For more information on our charity services please visit our website or contact Frank Harling on 01932 830664 or

About the author

Frank manages a portfolio of both audit and non-audit clients in a range of different sectors and industries, as well as assisting with the running of the corporate services department. He has extensive experience of providing Audit, Accounts preparation, Corporation Tax, VAT, CIS and Payroll. Frank also holds a solid experience with regards accounting and audit in a number of specialist areas, including charities, solicitors and pension schemes.

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