Clause 5

Part of National Insurance Contributions Bill – in a Public Bill Committee at 4:45 pm on 7th December 2010.

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Photo of David Gauke David Gauke The Exchequer Secretary 4:45 pm, 7th December 2010

I take the question in the spirit in which the hon. Gentleman asks it. I can understand that if a charity rang HMRC and said, “We are a charity” as opposed to, “We are a company that is set up to make a profit”, the test I described earlier about being a trade, profession or vocation, would clearly be applicable. HMRC and the charity would have to establish whether the activity itself constituted a trade, profession or vocation. I do not think that that is particularly unusual. It runs throughout the tax system, and HMRC officials will be very familiar with it. I suspect that charities will be familiar with it from having trading and non-trading arms. I suspect that the hon. Gentleman may be more familiar with the matter than I am. Indeed, the hon. Member for Luton South may be an expert, given his position as a trustee.