Like residential property, it is well-known that there are generous reliefs for charities which are carrying out building work.
Again, however, the rules are extremely strict, and just because you or your customer are a charity does not automatically mean you do not have to pay VAT.
For churches, schools and many other charitable bodies, reliefs are available. However, they can only be obtained if all the parts of the project meet the rules. Given how tight money can be for charities, this makes VAT a crucial issue. It can often be “make or break” for a particular project.
With this in mind, we can help you:
- Check that your planned project can avail of the reliefs
- Help you plan the project out so that it will be able to obtain the reliefs
- Advise on any concerns or worries you may have about HMRC’s attitude
- Help you to avoid the serious penalties – up to 100% of the VAT cost, plus the cost of the VAT – which HMRC will levy if the rules are not properly followed
A significant additional benefit of improving the VAT position can be that it makes it easier to persuade banks or other third-party financiers to support valuable projects for the benefit of your community.
Give us a call now to find out how we can help you make your project a reality.
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