Government ditches plans to tax expenses for volunteers

By Helen Warrell, Third Sector, 30 April 2008

The Charity Tax Group has persuaded the Government to drop plans that would have forced volunteers onto the payroll and imposed tax on their expense claims.

HM Revenue & Customs was planning to abolish the £8,500 threshold below which expenses and benefits are tax-free. But it has agreed to ditch the plan after the CTG argued that it could discourage volunteering and would be a huge administrative burden for charities that pay volunteers' expenses. It would...