Pre-Budget Report (Dec 09) - Implications for Churches and Christian Charities

The briefing paper from Stewardship on the Pre-Budget Report Dec 09 was sent to the administrators mailling list on 16th December, if you would like to receive a copy then please let us know.

The main points are:

• An across the board increase in the tax element of employer payroll costs of nearly 8% is no small matter and will need to be budgeted for accordingly.
• Legislation will be brought in to prevent a donation being eligible for tax relief if its purpose is to return value from the charity to the donor
• The Government has sponsored research into the impact of tax relief for higher rate taxpayers on gift aid donations.
• Where staff have been invited to sacrifice part oftheir salary in return for the provision of food and drink by their employer, the PAYE and National Insurance benefits of these arrangements is to be withdrawn.
• VAT will return to 17.5% creating potential budgetary problems for charities unable to claim VAT back
• There were no specific commitments to Gift Aid reform or furthering the Transitional Relief for Gift Aid