A team of Chief Executives have been working together on VAT novation following the earlier CEO Breakfast meeting on the topic.
We would like to understand your interest in supporting the development of a persuasion pack for members who are starting or continuing their efforts to approach local authorities for contract novation. The group is also eager to establish if there is interest amongst members to collectively approach a target list of local authorities.
Persuasion Pack
The pack will contain all the information that members need to submit to local authorities. It will include FAQs, anonymised examples of HMRC advice, and legal opinion on:
- The contractual relations between the trading subsidiary and the regulated provider.
- Why contracting with a charitable trading subsidiary is within the legal powers of local government.
- Why the arrangements are in line with Charity Commission guidance and law.
The pack serves as a toolkit to be utilised at various stages of discussion with local authorities. It clarifies that each member can contribute their own specific evidence to complete the process, such as correspondence with regulators, HMRC, and others. By collaborating to develop this resource, members can achieve collective savings compared to each member independently paying for essentially the same information.
Influencing Local Authorities
A consultant is already working independently with members supporting VAT novation discussions across several local authorities. An opportunity exists to extend this work on behalf of a wider pool of organisations.
Next steps
We would be very grateful if you could kindly indicate your interest in the opportunity. The team are meeting in early January to review responses.