Guidance on tax issues

Guidance on a range of tax issues that may affect organisations providing hospice care.

You can download guidance on the selected topics listed below, or alternatively, if there are any other issues that you feel should be covered in this section, please email the finance team.

Charity shops accounting and tax issues

We have produced guidance on the key tax issues related to charity shops and a brief note focusing specifically on issues around rates relief.

Impact of GP commissioning on VAT treatment of hospice buildings

Guidance is available on the potential impact of GP commissioning on the VAT treatment of hospice buildings.

VAT on consultants' (doctors) fees

Please refer to the guidance document on the VAT treatment where a hospice is invoiced by the NHS for a doctor's time.

Overview of VAT issues

Sayer Vincent has produced a general overview of VAT issues for the charity sector, much of which is relevant to hospices.

Overview of trading issues

Sayer Vincent has produced a general overview of trading issues for the charity sector, much of which is relevant to hospices.

Saffery Champness VAT, tax and Gift Aid guide

We welcome this guide by Saffery Champness, which will be a helpful resource for hospice staff on VAT, tax and Gift Aid. We are currently producing a guide with HM Revenue and Customs on VAT issues for hospices, we will let you know when it becomes available.

Deed of Covenant for Hospice Trading Subsidiaries

The Financial Reporting Council have published a clarification as to how payments from trading subsidiaries to their parent charities should be accounted for.
These changes affect how gift aid payments from trading subsidiaries to parent charities are treated, and could mean that they can no longer be accrued if they have not been paid prior to the year end.
As most hospices who have trading subsidiaries currently make payments to their parent charity by way of gift aid, these changes will have an immediate impact on how their accounts are presented. 
Hospices may wish to consider putting in place a Deed of Covenant prior to their financial year end in order to address the impact of these changes – an example template can be found here. Please note that while this template is provided in good faith, hospices may also wish to consult with their own legal advisors.

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