HMRC is carrying out a consultation on a possible model for a cost sharing exemption that might be introduced in the UK, with a response date of 30 September 2011.
Built Environment Forum Scotland (BEFS), the link body for built environment NGOs in Scotland, is organising a response to the consultation in support of its members. BEFS Director Craig Stirrat writes:
‘HMRC wants to hear the views of organisations on plans to make use of the VAT cost sharing exemption.
The exemption, which is a European law, allows businesses and organisations making VAT exempt and/or non business supplies to form cost sharing groups to achieve cost savings and economies of scale.
Once formed the groups are relieved of a VAT charge on their supplies, if all the conditions of the exemption are met.
The aim of the consultation is to examine how the VAT cost sharing exemption might best be used by UK organisations, and to look at a framework for its possible implementation.
Were it to be implemented, the exemption could remove the VAT charge preventing institutions such as charities from gaining efficiencies by sharing costs with each other.
BEFS is organising a Financial resilience workshop on the 22 August for those members who have expressed an interest – and therefore this proposal will be of relevance to many BEFS members.
HMRC Consultation: LINK
