Charities urged to reclaim VAT

Charities could be losing £400 million a year in unrecoverable VAT payments, according to the National Council for Voluntary Organisations.

It is urging all charities to examine their accounts as it publishes a new version of its VAT guide for voluntary organisations.

Some charities could be losing up to 10 per cent of their income to unnecessary VAT payments it suggests.

Oliver Sladen, head of finance at the National Council for Voluntary Organisations, said: “This guide provides practical advice for voluntary and community organisations on how they can reduce their VAT liability whilst staying within the law”.