It is true that charities do not pay tax on their income - but as the majority of services provided by charities are subsidised by voluntary donations (most of which comes from money which has already been taxed), the issue of tax on income is more theoretical than real. In fact, the amount paid in irrecoverable VAT is more than 10 per cent of the amount received by the sector in voluntary donations.
It is time that the true tax position of charities was recognised, once and for all, for what it is - a drain on the resources of charities and an impediment to fulfilling their true objectives.
Charities Tax Reform Group
13 OctoberReuse content