The Charity Tax Group (CTG) has called on the government to tackle the issue of irrecoverable VAT by extending refund schemes for charities in its submission to the Chancellor ahead of the Budget. 

CTG also called for a review of Insurance Premium Tax, reinstatement of Research and Development Credit as a relief for non-university charities, and exemption for charities from digital record-keeping.

Regarding the Apprenticeship Levy. it said that the scheme should be extended to cover volunteer training costs, and that charities should be allowed to assign more unused credits to other charities than the 10 per cent currently being considered.

John Hemming, chair of CTG, said: “The Budget presents an important opportunity for the government to demonstrate its continued support for charities. 

“As tax policies are developed we urge officials to continue to consult key stakeholders, avoid unintended consequences and identify important opportunities for simplification of the tax system for charities.”

The Budget announcement will take place on 8 March.