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Apr 20, 2023 8:08 AM UTC
Question

VAT for UK Based Charity

Hello all,

 

I am the treasurer for a new charity that is based in the UK. We are small and will hopefully expand in the foreseeable future.

 

I have recently purchased a laptop and mobile phone through the charity for an employee who has just started.

 

The charity's capitalisation threshold (for when to capitalise) is £1000. Therefore this has been charged to the P&L as an office expense.

 

As the invoice has VAT I wanted to ask how I account for the VAT on QuickBooks? Also as a charity am I correct that we do not pay VAT and can claim back? If so do I need to register the charity as VAT registered? I am trying to establish whether it is worth registering for VAT with HMRC?

 

Thank you all in advance. Happy to clarify on any points further if required.

1 reply

Apr 20, 2023 11:54 AM UTC

 Hello Lovebartonoxford, thanks for posting on the Community page, we would advise you speak to an accountant on the best way to enter this into the account for you.