Tax and VAT advice
Registering as a charity does not automatically mean that an entity is exempt from tax, as tax and VAT can be chargeable if a charity's activities are deemed to be treated as trading, or business, activities.
Tax issues for charities can be complex and LMG's experience in the field means we can advise on finding the route that optimises income retention.
One common structure for charities is to establish a charitable holding entity with a trading subsidiary. The subsidiary then gifts its trading profits to the charity. We can establish this group structure and advise on which activities should be in which entity to maximise tax and VAT relief for the group.
We can also assist with:
- charity tax repayment claims
- setting up Gift Aid schemes so that the charity can reclaim tax on donations from UK tax-paying individuals
- negotiations with Customs and Excise on activities subject to VAT.