HMRC one-to-many VAT email sent to some charities regarding non-business income

HMRC’s One-To-Many team are sending a brief educational email to selected small VAT registered charities (up to £2m turnover). The aim of the exercise is to raise awareness in the small VAT registered charities sector on the obligation to complete business/non-business apportionment calculations. HMRC are experiencing a high number of smaller charities who are not aware that they have non-business activities and are required to apportion their input tax. The email contains links to existing guidance and also highlights the possibility of overclaimed input tax relating to non-business activities. A copy of HMRC’s email has been shared with the CIOT for publication to raise awareness with tax agents, see here.