We highlighted in May 2019 that HMRC is looking at the advertising services charities receive from suppliers such as Facebook and Google. HMRC has now interpreted these supplies to be standard rated supplies of target marketing.
HMRC has not published proper clarification on its position and is still discussing matters with Charity Tax Group. However, visiting officers from HMRC are insisting that this matter is a ‘done deal’ and assessments are being issued.
A Court decision would hopefully assist in clarifying matters but there does not appear to be any such cases on the horizon. We will of course be keeping everyone informed of any progress on this issue, but at the moment it appears that HMRC are not going to change their position; charities who receive these services should be prepared and make the necessary provisions, as HMRC can go back four years.
If you wish to discuss this further please do not hesitate to contact Robert Warne.