"Reform UK has launched an investigation into whether it underpaid VAT on thousands of pounds of ticket sales and merchandise. Nigel Farage's party, which is leading in the public opinion polls, said it was reviewing its tax affairs after a Times investigation alleged it may have breached the law and could face a fine from HM Revenue & Customs (HMRC)."
"Political parties are likely to qualify for an exemption from VAT, including on membership fees and donations, according to HMRC. However, they are required to pay the tax on certain activities such as ticket and merchandise sales over the value of 90,000. Reform is understood to have exceeded the threshold last autumn due to ticket sales for its well-attended party conference in Birmingham, according to the Times."
"Filings by the party published in August showed that it made 438,296 from merchandise sales and events last year. A spokesperson for the party said: We are currently in the process of fully reviewing our position in respect of VAT with the assistance of our appointed specialist VAT advisers. There is no suggestion the party deliberately attempted to evade VAT."
Reform UK launched an investigation into possible VAT underpayment on thousands of pounds of ticket sales and merchandise while reviewing its tax affairs. Political parties generally qualify for VAT exemptions on membership fees and donations but must pay VAT on taxable activities once taxable supplies exceed £90,000. Reform exceeded that threshold last autumn due to strong ticket sales at its national conference in Birmingham and filings showed £438,296 from merchandise and events last year. A spokesperson said the party is fully reviewing its VAT position with specialist advisers, denied deliberate evasion, and noted it did not charge VAT on tickets until April.
Read at www.theguardian.com
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