The UK has produced a new updated public notice 709/5 which explains how you must account for VAT if you buy-in and re-sell travel facilities directly as an association and act as a principal or undisclosed agent (that is, acting in your own name). This notice should be read in conjunction with Notice 709/6 Travel agents and tour operators.
This updated version of the notice has been produced primarily to include important changes to TOMS legislation and practice which come into effect from 1 January 2010. These changes have already been published in Revenue & Customs Brief 27/09.
The European Commission wrote to the UK raising concerns about aspects of the UK’s operation of the TOMS and opining that the UK arrangements in respect of these issues were not fully compatible with the VAT Directive (2006/112 EC).The UK has accepted that aspects of the scheme were not implemented properly and gave a commitment to amend the TOMS, in order to comply with European law. These aspects concern:
•supplies to business customers for subsequent resale
•supplies to business customers for their own consumption and supplies of educational school trips
•use of market values in respect of in house supplies
If you are unsure of the VAT treatment for your association, then seek professional advice.
Come at see us on stand 50 at CHASE 2015
Why not visit us at CHASE on 16-17th February 2016 being held at the Business Design Centre, Islington, London. This Charities and Associations Event is free to attend and visitors can attend a wide range of free seminars and talk to a number exhibitors that are suppliers of goods, services and advice operating in the not for profit sector. Registration is now open http://www.conferencehouse.co.uk/chase-2016
The Financial Conduct Authority (FCA) has launched a consultation on its Mission, which is designed to provide a guiding set of principles around the strategic choices the FCA makes. It will inform the FCA’s strategy and day-to-day work over the coming years.
On 1 April 2013, the FCA became responsible for the conduct and supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
However, with finite resources and objectives set by Parliament, its overarching strategic objective is to ensure that relevant markets function well. Supporting this are three operational objectives: securing an appropriate degree of protection for consumers; protecting and enhancing the integrity of the UK financial system; and promoting effective competition in the interests of consumers. So, clarity of objectives and focussing of efforts is key. As is the reasoning behind its work and the tools it uses to do it.
Consequently, the FCA will be seeking engagement across the breadth of its stakeholders towards developing its Mission. Commenting on their efforts Andrew Bailey, FCA Chief Executive said, “Establishing and embedding a clear mission for the FCA is critical to our success, both as a regulator and to UK financial services as a whole. Our Mission will set out a framework within which we prioritise our work, ensuring we focus our resources in the right places. This will improve accountability and transparency of how and why we make the choices that we do. The Mission will only be a success if our stakeholders engage with us through this consultation process. We want this to be a very open process. Out of it, we hope that we can set out a clear path ahead for financial conduct regulation in the UK.”
Key themes that the FCA will be consulting on include:
• Protecting consumers – in an environment where consumers are increasingly expected to take responsibility for their own financial decisions, what is the right level of consumer protection; and how does the FCA balance the responsibilities of firms and consumers?
• Vulnerable consumers – should the FCA prioritise the protection of vulnerable consumers and if so how?
• Delivering consumer redress – what should the role of the FCA be in redress schemes, for example in dealing with activity outside the FCA’s remit?
• When the FCA intervenes – how the FCA identifies harm and how it decides which approach to take to address it; and how can the FCA be clearer for firms, consumers and stakeholders on what it is doing and why?
• The scope of regulation – explaining the remit the FCA has for taking action and the circumstances in which the FCA may intervene with regard to unregulated activities;
• The interaction between regulation and public policy – explaining this interaction using examples including access to financial services and price discrimination;
• Competition, supervision and enforcement – providing clarity and seeking feedback on the FCA’s current approach to using its different regulatory powers and tools;
• FCA Handbook – seeking suggestions on a proposed review of the FCA Handbook which sets out the rules for firms.