Demelza Hospice Care For Children

Demelza Hospice Care For Children

December 14, 2008 05:04 ET

Demelza Hospice Care for Children Calls for Fair VAT Treatment of Charities

LONDON, UNITED KINGDOM--(Marketwire - Dec. 14, 2008) -

Editors note: A photo and a video is available with the release.

Demelza, Hospice Care For Children's Head of Finance and Operations, Robert Tolson, is calling upon the UK Treasury to review the VAT treatment of charities. "Charities which rely mainly on donations for income, as opposed to income from trading, have been suffering from a VAT anomaly for years which is unfair," says Mr.Tolson. "In the case of my charity our costs include Pounds Sterling 100,000 in unrecoverable VAT. We cannot offset that VAT cost against trading income so we end up, effectively paying an extra 17.5% on our costs more than commercial businesses which can claim that back their VAT.

Mr.Tolson added, "The Government is looking at tax cuts to stimulate the economy. If they want to iron out this unfair anomaly in VAT rules, by gifting back to Demelza our Pounds Sterling 100,000 of VAT charges, we would employ 3 more Children's Nurses or 5 Community Support Workers. This would relieve the suffering of around 40 more children, with limited life expectancy and their families as well as providing employment to stimulate the economy."

Whilst VAT is governed by European law, it is within the power of the Treasury to gift back to charities their input VAT without breaching European law.

In the case of Demelza, the amount of Gift Aid relief in 2006-7 was about Pounds Sterling 50,000 whereas unrecoverable VAT dwarfed that sum at Pounds Sterling 100,000. Gift Aid is any event is a measure to avoid double taxation of income as donors have already paid income tax on their donations.

Demelza Hospice Care for Children relies almost entirely on donations from the public to run its services. It provides hospice care for over 450 children with life-limiting illnesses and their families across Kent, East Sussex and South London. Its services include offering children the opportunity to enjoy residential short breaks (with their families), a home visit service staffed by nurses and bereavement care and counselling.

Supporters of fair VAT treatment for charities include the Charity Finance Directors Group and Chestnut Tree House, the only children's hospice in Sussex.

To register your support please send your name and details to Demelza at

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