Perhaps it is a little cheeky to paraphrase a former “strap-line” adopted by HM Revenue & Customs when discussing the need to ensure that not too much tax is paid unwittingly on not-for-profit training provision, but in our new climate of the promotion of “fair” taxation, there is something peculiarly “fair” about paying as little tax as possible on training and education.
As the radical MP, Tony Benn, used to say education does not merely benefit the educated person, but benefits everyone in society (assuming here that the education given is in a subject which will benefit everyone). So, we at haysmacintyre value our deep involvement in the training and education sector, which includes a wide variety of organisations, which can be inherently complicated, and the purposes and activities of which need to be considered carefully, and interpreted (particularly to HMRC) in a complete and subtle way, in order to avoid an expensive and incorrect decision as to their tax or VAT liabilities.
In some cases, the organisations in question are absolutely unique, and there is no template or parallel upon which to draw for one’s inspiration. In many cases, there are very similar organisations perhaps with very similar names (after all, a university is not unique in being a university), but then, in delving under the surface, and looking at organisational structure, activities, and so on, we find there are small but arguably distinct differences.
Sometimes those differences are magnified beyond what is credible by HMRC in pursuit of too much tax, and sometimes the distinctions are glossed over by them in pursuit of the same result. Our job, as I see it, is to get the balance right and to show the true position and how and why it ought to involve a fairer, and, frankly, lower, tax burden than HMRC sometimes adopt.
It is in this context of such consistent work that it is pleasing to be able to say that one training organisation has defended an incorrect interpretation from HMRC that would, had HMRC continued to pursue it, have cost something of the order of £600,000. It would have cost considerably more going forward.
This was achieved over several months of painstaking negotiation by our specialist charity tax consultant, James Cameron, whose approach was to courteously and thoroughly guide the officer through the issues and the activities of the organisation which, at length, produced the appropriate and fair outcome.
More money for more training to ensure that the British workforce can compete and generate more taxation for a cash-strapped government. More satisfaction for us in our achievements for our clients and in particular in showcasing our ability to deal with subtle distinctions and complex arguments in a successful way.
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