In the past, charities mainly received grants and donations, but more charities are receiving payment for the delivery of services under contract.

This guide explains the characteristics of grants and contracts, and how to treat them for VAT and accounting purposes.

Latest version updated August 2018

The content of guides is correct at the time stated above but inevitably legal changes, case law and new financial reporting standards will change. You are therefore advised to check any particular actions you plan to take with the appropriate authority before committing yourself. No responsibility is accepted by the authors for reliance placed on the content of this guide.