Soft landing for MTD for VAT should be extended

The Charity Tax Group is asking the government to continue to consult the charity sector before Making Tax Digital for VAT is introduced in April and be open to extending the soft landing period.

Charity Tax Group chairman John Hemming said: ‘The introduction of MTD presents an immediate challenge for an enormous number of charities. Many are still ignorant of what it will mean. A longer soft landing period would help charities prepare for this change.

‘We also call on the government to clarify that VAT zero rating is applicable to online charity advertising and make it fit for purpose in the digital age. The current uncertainty is limiting essential fundraising activity.

‘Small practical changes would produce real benefits to fundraising and charity administration with little cost to government.

‘We are pushing for an increase in the non-primary purpose trading limit an increase in the value of eligible donations...