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GIFT AID AND VAT

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My Parish has adopted  a project and as such will be able to claim the VAT back. They are starting to fundraise and plan to set up a charity to process donations and claim gift aid . Some time ago I read that you cant claim both on the same project (Bob Geldolf  Live aid?).

I have a contact in HMRC but they are most evasive about giving advice  which seems stupid but that 's the way they operate.    Has anyone any experience  of this situation  and can direct me to any specific advice.
asked by (1.3k points)
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1 Answer

0 votes
Have a look at DavetheClerk's answer here?

https://towncouncillor.com/6778/crowd-funding?show=6778#q6778
answered by (3k points)
Not entirely clear but  is this right ?
Total cost of project    £100k plus VAT
If PC pays the lot all VAT reclaimable
If third party contributes £50k inclusive of gift aid  only half of the VAT is reclaimable
I found this link today together with a reference to VAT act 1994 s33,
https://library.croneri.co.uk/cch_uk/bvr/51-715
Could the more experienced commentators on this board  opine whether this means the VAT is only reclaimable on a PC project for funds that emanate for its own funds please? It seems a reasonable approach but as I say my PC plan to set up a CIO to process public donations and claim gift aid  and I need to be sure of my ground. I find this very complicated
Further advice here  https://www.uptonvillagehall.co.uk/wp-content/uploads/2013/07/VAT_Reclaim.pdf

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