Share

Pensions reform and the cost-sharing exemption top CFG's Budget demands

Pensions reform and the cost-sharing exemption top CFG's Budget demands
News

Pensions reform and the cost-sharing exemption top CFG's Budget demands

Finance | Tania Mason | 1 Mar 2012

Pensions reform, VAT rules, a gift aid database and trading limits all featured in CFG’s submission to the Treasury ahead of this year’s Budget.

In its written representation, CFG said the recent Wedgwood Museum case highlighted the “inequitable nature of the employer debt regulations” and said the ‘last man standing’ rule is having a “major impact on the long-term health and viability of many charities”.

It said: “At a time when their finances are being squeezed from all angles, the existing regulation mean that charities are being further penalised – trapped by a pension scheme from which they cannot escape and are effectively prohibited from restructuring, merger, engaging in joint ventures, making redundancies or looking to take on additional public services as a means of adapting to a tougher economic climate.”

CFG requested that the Chancellor announce in his 21 March Budget that the government would consult on the pensions issue “within the year”.

VAT and gift aid

On irrecoverable VAT, the umbrella body acknowledged the government’s reluctance to forego the £400-£500m it takes from the sector each year in this period of limited resources, but asks that it “remain high on the agenda and seen as something for long-term review”.

Regarding VAT on shared services, CFG asked for a commitment in the Budget that it will “explore sector-specific alternatives to the VAT cost-sharing exemption which can be adopted by all charities wanting to share services”.

And on gift aid, it reiterated previous requests for a simple database that would enable organisations to log and record gift aid declarations more efficiently.

Trading and payroll giving

In addition, it implored the government to increase the limit for non-primary purpose trading from £50,000 to £250,000, saying that this would significantly reduce cost and bureaucracy for many organisations.

And it requested reform of payroll giving, more support to help charities avail themselves of social investment, a review of the iXBRL online filing requirements and the inclusion of the issue of pensions provision in changes to the Tupe Regulations.

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Listen pledges £45k to emergency appeal to save Damilola Taylor Trust

28 Nov 2014

A charity set up in memory of Damilola Taylor, the schoolboy who was stabbed to death in south London,...

Charities could lose out on gift aid under devolution settlement, tax experts warn

27 Nov 2014

Proposals from the Smith Commission to give Scotland powers over the rate of income tax will have “significant...

More will-writers prompting clients to leave legacy gifts, research shows

27 Nov 2014

More solicitors and will-writers are telling their clients about leaving a legacy than at any time in...

New policies in place at school following head’s 381 per cent pay rise

28 Nov 2014

The Charity Commission has closed a case reviewing the high pay of a school’s head after finding that...

Joint registration between Charity Commission and HMRC delayed

27 Nov 2014

Plans for the Charity Commission and HM Revenue & Customs to set up a joint registration process for...

NCVO backs Commission's focus on regulation

26 Nov 2014

NCVO supports the Charity Commission’s decision to focus more on regulation, but is cautious about the...

‘The challenge is getting people to use IT systems’

28 Nov 2014

Whatever type of customer-relationship management system charities use, the biggest challenge is convincing...

'Be careful what you say and don't be boring on social media'

27 Nov 2014

Don’t be too serious on social media and be prepared to pay for premium services, delegates at yesterday’s...

'Focus on people as well as technology', IT experts told

27 Nov 2014

IT directors need to learn when to step back and allow others in their organisation to experiment with...

Join the discussion

 Twitter button

@CSFinance