Posted: Thu 22nd Mar 2012

Wrexham Disabled Transport Charity Hit By Tax Loophole

Wrexham.com for people living in or visiting the wrexham area
This article is old - Published: Thursday, Mar 22nd, 2012

A vital community transport charity in Wrexham faces penalisation under government tax policies because it is proving so successful.

Chariotts, which provides community transport for people with disabilities in the area, is struggling to avoid being forced to increase charges for passengers by 20 per cent.

While the government makes an exemption for VAT for organisations using vehicles with 10 seats or more, the smaller vehicles which Chariotts use are not covered, meaning that once the organisation raises over a certain amount of money it becomes VAT eligible.

Because of this loophole, and the success of Chariotts in the Wrexham area where its red vans are a common sight, the small amount the charity charges to cover costs could soon be increased by 20 per cent.

The charity has enlisted the help of Wrexham MP Ian Lucas, who has raised the issue a number of times in Parliament, and supporters have also started a petition calling on the government to change its rules.

Mr Lucas has written to Ministers to explain the issue but has so far received no indication that the government intends to change its current tax regime.

He said: “I have raised this on the floor of the commons, in written answers and by letter. Ministers’ replies suggest that they do not have the power to change the VAT rules without EU approval, but they seem unwilling to even ask about any alterations.”



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