UK Budget

As the annual cornerstone of the Government's financial policy CFDG regularly seek to influence the Budget and its proposals. To a lesser extent the pre-budget report is also a policy-making instrument, and is of course a useful indication of the direction the Government is taking in any one year.

 

Contents
- Budget 2009
- Pre-budget report 2008
- Budget 2008

 

Budget 2009

CFDG's budget briefing and initial budget statement.

It has since come to our attention that the Budget also announced proposals to introduce a personal liability for the senior accounting officers of large companies (SAOs). SAOs will now be required to provide personal certification that their accounting systems are capable of ensuring accuracy in their tax reporting, under the penalty of £15,000 fines. For more information see the briefing from BDO Stoy Hayward.

CFDG made a wide-ranging 2009 Budget submission, encompassing demands for the sector on: Gift Aid; VAT; the Staff Hire Concession; Substantial donors; National Insurance Contributions; Business rates; Trading and sponsorship; pensions; and water rates. Read our press release here.

The full text of the budget can be found on the Treasury website.

 

Pre-budget Report (PBR) 2008

The Chancellor presented the pre-budget report on Monday 24th November. The major announcement was the temporoary reduction of the standard rate of VAT to 15%. This comes into force on 1st December 2008, and runs until 31st December 2009. You can find below a guide from HMRC on preparing for the change in the VAT standard rate, and a briefing on the PBR for charities from CFDG.

PDF Document CFDG, Briefing on the PBR
PDF Document HMRC, VAT - a change in the standard rate
PDF Document Saffery Champness, VAT briefing
Hyperlink  Chantrey Vellacott DFK briefing on the VAT fall

 

Budget 2008

CFDG submitted a response to the 2008 budget, and responded to the Gift Consultation, to Government's reply to which was released on the same day as this year's budget. We were proud to see our call for transitional relief for charities answered in the Government's response to the Gift Aid consultation. The Government will provide transitional relief to the sector on Gift Aid claims at a rate of 22% for the next three years, worth an estimated £300 million to the sector.

CFDG also welcomed moves to simply for the audit proceedures for charities, and extra resources to help charities understand and claim Gift Aid. We also welcomed the Government's committment to a consultation on substantial donors.

CFDG were however disappointed that the staff hire concession is being withdrawn as of 1 April 2009. Please see Current VAT issues (below) for further details of our response and action in this area.

PDF Document CFDG Budget Briefing
PDF Document CFDG Budget Submission
Internet Link CFDG and CTG press release on the budget