NHS Charities: HMRC Attacks NHS Charity Expenditure

In these difficult times, many will have noted HMRC's increasingly aggressive approach to tax collection. With the benefit of significantly enhanced powers to help the regulator maximise the tax take, it is disheartening to note the HMRC's recent interest in NHS staff who may have in some way benefited from the support of NHS charities.

Charities should be aware that training or educational opportunities and even social events may give rise to a taxable benefit in the hands of the individual. Awards can soon lose their incentive value if the recipient later has to pay tax on the award. Care must therefore be taken, especially in relation to the charitable funds administered at a local level by a ward or department - often because this accords with the wishes of a donor - to ensure that staff do not accidentally incur a tax liability.