Small trading exemptions for charities to increase.
The Chancellor, Philip Hammond, announced in the Autumn Budget on 30 October 2018 that legislation will be introduced to increase the small trading tax exemption limits. These limits apply to trading that does not relate to the charity’s primary purpose.
The current exemption threshold of £50,000 will be changed to £80,000 and the lower band changed from £5,000 to £8,000.
The changes will take effect on and after 6 April 2019 for unincorporated charities and from 1 April 2019 for incorporated charities.
The announcement is part of a series of measures government plans to put in place in order to reduce cost and administrative burdens on charities so that they can be better “able to maintain effective delivery of their charitable aims”.
Over the past few years the charity and not for profit sector has had to cope with on-going changes to taxation legislation and it continues to face dramatic changes in their accounting and reporting requirements and regulatory environments.
Our Charity and Not for Profit accountants, business and tax advisers offer a comprehensive range of services to the sector.
In turn, if you require a CFO but you are finding the prospect of hiring experienced financial staff overwhelming, or you are daunted by the cost of taking on extra permanent staff, you can outsource your finance, business advisory and payroll function to us. Our experienced experts in this sector are available to assist.
Contact Joanne Holland or your usual Beavis Morgan Partner for further information.