Dear Gordon, give us back our VAT!

In 2005, the RNLI paid over £2m of irrecoverable VAT to the Government and the charitable sector as a whole pays between £400m and £500m each year.

This means that when the RNLI buys new equipment, builds, repairs or refurbishes lifeboat stations, the VAT paid is lost to the chancellor and has to be made up from voluntary contributions. To put the problem into perspective, the amount lost each year is about the same needed to buy a new all weather lifeboat.

The Charities’ Tax Reform Group (CTRG) is urging the public to sign an e-petition, asking that charities receive reimbursement for these charges, and the RNLI is backing this campaign, along with many other charities.

A MORI poll commissioned by CTRG in September 2005 revealed that fewer than three in ten adults are aware that charities pay VAT they cannot later recover, with 37 percent believing incorrectly that charities do not pay such taxes.

According to the poll, 77 percent agree that the Government should compensate charities in full for this VAT burden and it is hoped that this e-petition will underline this fact.

If you wish to add your name to the petition you can find it at: http://petitions.pm.gov.uk/Charities/