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New queries, issue 4594

04 April 2017
Issue: 4594 / Categories: Forum & Feedback

Shared goals; Beneficial cars?; Property transfer; Cascading down

Shared goals

VAT position for charity hiring out staff to a non-VAT registered charity.

I act for a charity which has had some financial challenges so it has seconded two key members of staff to another charity for two days a week. The second charity will pay my client for the full cost of the employees. This would be gross salary plus employer’s National Insurance on a pro rata basis for two days a week plus an extra 10% for administration costs.

The first employee works on fundraising events for both charities and the other is involved with helping elderly people (she is involved with the charitable activities of both entities).

My question relates to VAT: my client is registered for VAT and has asked whether 20% VAT should be added on the charges made to the second charity? If so is there a way to...

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