Let's talk VAT - In Kind Direct



#commUNITY News

Let’s talk VAT

We actively support changes that will reduce the cost of essential goods for organisations like yours and the people you support, and that support companies to donate more products – including targeted VAT relief.   

The Autumn Statement delivered on two key changes we have supported with sector partners.  

VAT (currently 20%) will be removed from reusable period underwear from February 2024, bringing them in line with other period products like tampons and pads that have been exempt from VAT since 2021.  

Though not yet published, our upcoming Period Equity research recommends this change to increase accessibility of period products.  Companies like M&S and WUKA recently campaigned publicly for this change too.  

Promoting reusable period underwear also has many environmental benefits, such as reducing single-use plastic waste, that can otherwise take hundreds of years to decompose naturally. 

We will continue to work closely with our partners to unlock even more donations of these needed, sustainable items. 

“I think of all the items we have received the period pants have definitely made the most, and the longest term difference to the lives of families impacted by disability on Teesside.  
Teenagers and adults with Autism are finding periods a lot less stressful, we’ve prevented 3 teenagers from missing school when on their period, we’ve helped people with stomas who leak feel confident going out, and a few people that have Incontinence issues who can’t afford pads are immensely grateful!” Teesside Community Action Group 

As part of the Civil Society Group, we also supported the re-introduction of VAT relief for energy saving measures in buildings used solely for charitable purposes that will help reduce energy costs and carbon emissions for many organisations. This VAT relief will come into force from February 2024.  

Helpful summaries of the Autumn Statement and analysis of what it could mean for your organisation are available from the Charity Finance Group, DSC, and NCVO.   

Reclaiming VAT on our services

As a charity that charges for a service to source donated goods, sort and store them at our warehouse, pack and deliver them across the UK to you, we include VAT in our charge.     

If your organisation is VAT-registered then you may be able to reclaim the VAT directly yourselves from HMRC.   

Through the Account area of our website you can view or print VAT invoices for items you’ve received.  We provide step by step guidance on how to do this on our FAQs page under My Account > Where can I find invoices from previous orders? 

We will soon be introducing a new feature on our website to enable you to view our charge inclusive, or exclusive of VAT.