HM Revenue and Customs Brief 36/08
Submit Articles Back to Articles
Issued 6 August 2008
VAT Treatment of Charity Challenge Events
This Brief announces HMRC’s revised guidance on Charity Challenge Events,
including those that qualify for the VAT Charity Fundraising Exemption.
Many charities use Charity Challenge Events, for example running, walking and
cycling events, to raise funds through sponsorship of the individuals who take
Following representations from the charity sector HMRC have been working with
the sector to produce revised guidance to assist charities to determine the
correct VAT liability of such events.
HMRC has now produced revised guidance with examples and a flowchart to be
used with the guidance. The revised guidance is included as updates to Notice
701/1 Charities and Notice CWL4 Fund-raising events: Exemption for charities and
other qualifying bodies.
Update 1 to CWL4 revises the existing guidance in Section 3.15 of that Notice
and cross-refers to the more detailed guidance now included as Update 2 to
Notice 701/1 that introduces a revised section 5.9.4, cross-referenced to a new
section 10 of that Notice.
The guidance will have effect from 31 July 2008. However, HMRC is aware that
some charities are likely to have signed contracts sometime before the events
are due to take place. HMRC therefore accepts that where a contract for an event
has been signed or negotiation with suppliers has started or the event has been
publicised prior to the publication of the new guidance, charities can account
for VAT using their previous procedures.
Charities may wish to revisit their previous records and make claims for VAT
incorrectly treated in respect of previous contracts.
More information about making claims can be found in
VAT Notice 700/45 How to correct VAT errors or make adjustments or claims
and Business Brief 28/04.
For further information and advice, please contact HMRC Charities Helpline on
0845 302 0203.
About the Author
© Crown Copyright 2008.
A licence is need to reproduce this article and has been republished for
educational / informational purposes only. Article reproduced by permission of
HM Revenue & Customs under the terms of a Click-Use Licence. Tax briefs are
updated regularly and may be out of date at time of reading.
Follow us @Scopulus_News
Article Published/Sorted/Amended on Scopulus 2008-08-18 10:24:41 in Tax Articles