In this episode, I cover the basics of Value Added Tax (VAT) as it applies to the charity sector, outlining key elements and setting the stage for the next episode, where I'll be joined by a charity VAT specialist.
KEY TAKEAWAYS
Charities may need to register for VAT if their taxable income exceeds the VAT registration threshold, and they can choose to register voluntarily.
Seek advice when it comes to VAT, as any errors can have significant financial implications.
BEST MOMENTS
"If the charity makes a lot of vertical purchases, registering enables the charity to reclaim VAT that's been paid, which means more money to spend on the charity's mission instead of paying it out as tax."
EPISODE RESOURCE
https://www.gov.uk/vat-charities
ABOUT YOUR HOST
Aishat operates her own bookkeeping and accounting services practice – BAnC Services which focuses primarily on serving non-profits. Before founding her practice, she dedicated over two decades to the non-profit sector.
With her podcast, Aishat shares practical insights and expertise to streamline financial management for non-profits; and shines a light on the often unseen & unheard efforts that uphold the delivery of a non-profit’s mission.
Beyond her professional endeavours with non-profits, Aishat is deeply committed to supporting single mothers with navigating financial management challenges and is the author of "Money Solutions for Single Mums". She also champions financial literacy among young black adults and thrives in discussions about money management.
Work with Aishat: www.bancservices.co.uk
CONNECT
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