The main bureaucracy/admin burden on charities are the complex rules around VAT.  As well as having a direct cost in terms of the VAT that cannot be recovered (which will get bigger with the increase to 20%), there is a huge admin burden in working out how different transactions should be recorded, how much VAT can be reclaimed, getting specialist advice on appropriate treatments etc.  A simple blanket rule that charities are exempt from VAT would be a huge relief.

Why is this idea important?

This would free up scarce resources that charities could commit to the pursuit of their charitable objectives and enable the voluntary sector to become an even bigger player in the Big Society.

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