Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Payroll services provided by a charity to disabled people

05 August 2019
Issue: 4707 / Categories: Tax cases
Cheshire Centre for Independent Living (TC7182)

The taxpayer was a charity providing support services for disabled people their families and carers. These included a payroll service that aimed to empower disabled people to direct their own care; to simplify and increase uptake of direct payments; and to alleviate any additional stress for the individual.

The dispute concerned the VAT liability of fees earned by the company for the provision of a payroll services to disabled people who employed a personal assistant to help them with their needs. On the funding for a personal assistant the legislation exempts the supply of ‘services which are directly connected with the provision of care treatment or instruction’ for disabled people if provided by a charity or regulated body (VATA 1994 Sch 9 group 7).

The taxpayer claimed that the payroll service was exempt. This was on the basis it was a ‘necessary part of making the...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon