Hospice VAT Announcement
The Section 33 Hospice VAT refund has been announced.
Hopefully there will be more implementation details next week but there is enough for hospices to work on already. It will only apply to charities that provide palliative care so prepare to restructure if need be. Start thinking how you will record the VAT you incur on the palliative care and your other non business activities such as donation fundraising. If you have business activities in the charity such as a lottery then think about a fair method of apportionment or whether you can move such activities.
We need detail on things like VAT groups, special recovery method approval mechanisms and the Capital Goods Scheme but are in discussions on these questions with HMRC.
(For my guide to the scheme see Hospice VAT Guide