Letter: Charities working hard for their money - and supporting the Exchequer

Sir: Chris Blackhurst ("Can we have faith in charities?", 24 August) was unnecessarily alarmist: "This year charitable tax exempt status will cost the Exchequer pounds 725m,"

Charities contribute through VAT receipts, as unlike commercial organisations they are in most cases unable to reclaim VAT on the goods and services they buy. The increase in VAT to 17.5 per cent a few years ago hit charities hard; and we now have to contend with the recently-imposed VAT on recruitment advertising. Charities are an enormous source of employment, so staff contribute through PAYE and National Insurance to the Exchequer. I think it is quite possible that the Government receives more in VAT and tax receipts from charities than it loses in tax exemption.

MARK PEMBERTON

North London Theatre Trust

E-mail: mp001@netgates.co.uk