10 April 2018 
Andrea Marshall, Tax Specialist
The Charity Tax Group has been discussing the thorny issue of whether targeted online advertising by the likes of Facebook and Google etc. counts as being 'selective' (standard-rated) or not (zero-rated) for charity customers. HMRC's opinion is that the algorithms and targeting used by these companies does count as selection and are therefore stating that such advertising should be standard-rated. However, the CTG is continuing its work with advertising bodies and is considering obtaining a legal opinion on this and possibly supporting any litigation that arises.
The CTG is asking for assistance on this in two ways: firstly whether any charities are prepared to help fund the legal work, and secondly, in understanding the cost of this advertising to the charitable sector. We would be grateful if you could let Amanda know how much your university spent on this type of advertising in 2017, and if possible, in the previous three years (or split by financial year if easier), and whether your university would be prepared to contribute financially to the CTG obtaining a legal opinion. Further information about HMRC's current position can be found in the CTG's update here.
