Chancellor George Osborne has announced sweeping reforms for tax rules relating to private donations to street beggars and sellers of The Big Issue. As of 1st April 2013, all licenced beggars must be registered for VAT and charge tax on top of all donations they receive.
Instead of the usual request for ‘a pound for a cup of tea’, under new regulations the full VAT inclusive amount must be quoted, along with a breakdown showing the taxable amount paid. In future, the full request should be ‘Hey mate, can you spare a pound and twenty pence for a cup of tea? Please note that the quoted amount is inclusive of Value Added Tax at a rate of 20 percent’.
In return the cost of string for tying up small dogs will now be reclaimable as a legitimate business expense.
