Great Fundraising Organizations, by Alan Clayton. Book cover.

Call for end to not-for-profit tax confusion

Howard Lake | 6 September 2005 | News

VAT experts at accountants UHY Hacker Young are calling for an overhaul of the ‘outdated’ and ‘unfair’ test system used to determine whether not-for profit organisations are entitled to tax reliefs.

Not-for-profit educational, sporting and cultural organisations have to take a special test to qualify for the relief. However, the test for each type of body is different.

Simon Newark, not-for-profit expert at accountants UHY Hacker Young, said: “Having different rules for each type of organisation is ridiculous. The rules are frequently updated but it would make it a lot easier for all charities if there were clear, uniform rules for everyone.

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“EU law gives member states the opportunity to choose from a list of conditions to qualify for tax relief. Rather than choosing one definition of ‘not-for profit’ and giving all organisations the same
qualifying test, the UK has made it much more complicated by choosing
different conditions for each type of organisation.”

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