UK government attempts to claw back VAT on charity record
It has been revealed that the UK government will attempt to claw back lost VAT on the Haiti earthquake record which raised significant funds for the disaster appeal. It is believed that the Treasury will be billing the Department for International Development for the lost revenue although the UK government insists that additional funding will be made available to cover the VAT cost.
It is unclear why the Treasury would look to claim the money from the Department for International Development while at the same time increasing the departments budget to cover the VAT cost. There is a feeling that the UK government was in some way looking to reduce the budget of the Department for International Development in order to increase government coffers at these most difficult of times.
While number 10 Downing St. has denied the claim that VAT is being clawed back by a budget reduction there is no doubt that the government was caught offguard when this news was leaked to the press. It will be interesting to see how the VAT is clawed back and whether in fact the department's budget is in any way impacted.
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