NCVO, the Institute of Fundraising and the Charity Finance Group have responded to a HMRC consultation on the Gift Aid Small Donation Scheme, saying that it has not lived up to expectations. The scheme has raised £27m against projections of £135m and the three organisations have argued that the scheme needs to be “clearer, simpler and broader”.
The s33a VAT refund scheme eligibility criteria has been extended to include local museums and galleries. These organisations must have free admission for at least 30 hours per week (with no exceptions).
From 6 April 2016 it is possible for charities to benefit from small-scale work lotteries, residents’ lotteries and incidental non-commercial lotteries. Previously this was prohibited.
Charities often further their own objects by providing funding to other charities and in some cases other organisations that are not registered charities. This grant funding often benefits causes or groups that struggle to obtain the financial support they need to carry out carry out activities or provide services.
CC35 (Trustees Trading and Tax) guidance has recently been released which covers subsidiary company charity donations. The guidance confirms that a company cannot make a charitable donation in excess of its distributable reserves, as this is not allowed under company law.
From April 2016 there will be 2 student loan plan types which will be known as Plan 1 and Plan 2. Each plan will have a different threshold. We will need to deduct student loan repayments using the appropriate plan type.
If you employ an apprentice who is under the age of 25, from 6 April 2016 you may no longer have to pay employer Class 1 NICs on their earnings up to the new Apprentice Upper Secondary Threshold, which will be £43,000 a year for the tax year beginning 6 April 2016.
Contracting out of the additional State Pension on a defined benefit (DB) base ended on 5 April 2016. Any employers who have benefited from paying a reduced rate of employers’ national insurance will pay the full 13.8% from 6 April 2016.
If you are an eligible employer, you can reduce the amount of employer NICs you pay by up to £2,000 per year through the Employment Allowance.