Expense rules for charities ‘may change’

Posted in News on the March 12th, 2008

Those working for voluntary groups and charities may be able to claim expenses for childcare and travelling, it has been revealed.

Later this week, the House of Lords is to debate amending the employment bill which, if it passed, will see restrictions on voluntary expenses removed.

Currently, those working for a voluntary group can claim for costs incurred while at work, but not for any expenses they may face, such as travel.

Phil Hope, minister of the third sector, said: "We want to be sure that voluntary workers are not out of pocket as a result of volunteering, while also minimising the chances of low-paying jobs emerging."

He pointed out that although those working for voluntary groups are not paid they will still incur expenses and that the new law should allow such reimbursements to take place "without any problems".

If passed, the legislation may help charities to improve sustainable efficiencies.

Last month, several tax experts suggested that moves by HM Revenue & Customs to allow voluntary and charity groups to reclaim a portion of VAT expenses on investment managers’ fees could save such bodies millions of pounds.

More about sustainable efficiencies.

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