Azets, an accountancy firm with offices in Poole and Blandford Forum, has announced that VAT-registered companies can now donate goods to registered charities without incurring VAT, as long as the items support people in need or deliver charitable services. Siobhan Holmes, a partner at Azets, highlighted the positive impact of this change amid declining charity donations, which dropped by over £1.4 billion last year. Previously, businesses had to pay VAT on goods they donated after reclaiming it, but this new rule encourages donations instead of disposals. Charities are advised to keep accurate records of high-value donations.
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