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Investigation Reveals Taxman Pockets £90 Million of Charity Money

A staggering 90 million pounds of charity money is being paid out to the tax-man instead of going on good causes.
Finance - 8 December 2011   Download IconContent available for download:  
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A staggering 90 million pounds will be paid out to the taxman instead of going to good causes this year – as we find out almost half of UK charities have overpaid in VAT on their energy bills. Such an astounding figure has an inconceivably far reaching potential and one which could have saved thousand of lost lives.

The estimated figure set to be banked by Revenue and Customs is over three time the amount raised on the night of Children In Need this year and comes from research carried out by’ Make it Cheaper’. 168 million pounds has accumulated over the past three years - a figure that could now be rebated.

Charities are now calling on HMRC to make sure good causes know they qualify for a discounted 5% rate on gas and electricity as almost half (46%) of charities are totally unaware of the lesser rate they should be paying and over two thirds (69%) don’t know about the rebate they can claim for incorrect payments over the past three years.

. Introduction:

A new report reveals charities this year will loose out on 90 million pounds having wrongly paid normal rates for their utility bills. This astounding sum of money could have potentially saved thousands of lives, but instead sits in the pocket of the taxman. Legally charities should enjoy discounted rates on their energy bills however a lack of awareness amongst almost half of charities has lead to this staggering overpayment, which is over three times the amount raised on the night of Children in Need this year.

So where does the blame for this lack of awareness lie, how can charities make sure they aren’t paying more than they should be and how can they go about getting back the money they’ve lost out on?

Joining us to discuss this further is Jonathan Elliott from Make it Cheaper, the body responsible for the investigation.

. Suggested Questions:

What does the research reveal about how much money charities in our area are missing out on?

Where does the blame lie for such a profound lack of awareness amongst charities about their reduced VAT levels?

What impact is this having on charities?

Are those charities who have been overpaying able to reclaim any money which they may have lost?

What advice do you have for charities who aren’t sure about what they should really be paying?

Where can we find more information?