Pet charity in Telford bids to claw back £8m tax

Bosses at leading veterinary charity the PDSA in Telford are attempting to claw back £8 million in VAT which could enable the charity to expand.

The charity, which has its head offices in Priorslee, has appealed for the money to be returned at a First-Tier Tax Tribunal in Birmingham claiming the VAT should not have been taken by HM Revenue and Customs in the first place.

Dr Stuart Duff, from PDSA, told the tribunal the charity wanted to expand if more financial resources became available.

He said if the £8 million could be clawed back it could go towards creating more help for thousands of pet owners across the UK.

HM Revenue and Customs has opposed the appeal for the return of the money.

Mr David Southern, representing PDSA, said the charity had a Pet-Aid scheme whereby pet owners suffering from genuine financial hardship could pay an access fee which would entitle their sick or injured pets to be treated at private veterinary practices. PDSA then paid the vets from its donated funds, he said.

The tribunal was told that the £8 million VAT had been paid over several years and the charity now believed it should be paid back.

Tribunal judge Mr Michael Tildesley OBE was told the PDSA was formed in 1917 and paid about £6 million-a-year to private vets to treat animals.

The hearing was told the income from access fees was £400,000-a-year and the charity relied on donations to help fund treatment.

PDSA spokesman Andy Thomas said: “A ruling on the appeal is not expected for several weeks, and it would therefore not be appropriate to comment until a decision has been made.”

The PDSA’s appeal has been launched as charities have warned donations will be hit if the Government goes ahead with its controversial tax clampdown on wealthy donors.