CTG calls for urgent clarification on tax treatment for charity mailings
The Charity Tax Group has called for urgent guidance on the rules around the tax treatment of print and delivery of charity mail packs.
CTG said HMRC expects charities to comply with new rules which do not zero-rate print and delivery of charity mailings as a composite supply of delivered goods from 1 April. CTG has concerns with the rules and the lack of guidance around them, but said HMRC will not provide guidance until after the election due to purdah rules.
CTG said it was expecting guidance on the issue early this year, well in advance of the 1 April implementation date, but draft guidance was only made available on 16 March with a four day consultation period.
In response the group raised concerns about the delay in producing guidance and a number of problems with its content, including matters of factual inaccuracy, and called for a further postponement of the implementation date.
However, HMRC has stated the industry was aware of the position following a letter in December 2014, and was required to apply the correct treatment from 1 April 2015.