We have developed a series of ALS models that cover everything your group and service provider needs to include in a written agreement. A Service Level Contract (SLA) is a two-way written agreement that defines the services and quality your MS Society group expects from a service provider. Not in the profit business? Do you enter into service level agreements to earn “Grant” revenues? If the answer to these two questions is yes, you should read it. You must set up an ALS for each service provided to people who have or have persons affected by the Member States, which will be provided by a professional on behalf of your group. A “business or business provider” is an individual or organization that engages in a professional activity as a business or outside its core business, but is engaged in a liberal activity in the field in which it specializes. In many cases, the distribution of costs or the burden between the two is, at best, poorly defined and, in the worst case, totally artificial. The Charity Board recommends the use of written agreements or contracts to protect both parties, but a Level of Service Agreement (SLA) between the two companies that define costs is often lacking. We expect your coordination team to use our ALS model to establish this agreement. It`s not a problem, I hear you say we`ll only be Gift Aid, anyway! The danger is that if your subsidiary does not have sufficient reserves to give the help of that much, it ends with a tax bill. The subsidiary cannot pay more than it can pay and a large amount of undue costs could easily lead to a difficult situation. On the other hand, the charity could bear the costs of its own business activities.
Not only does this conceal the conduct of business activities by creating false profits, but it also creates the ability for HMRC to argue that charitable costs are not used for charitable purposes – with a potential tax debt as a result (within the charity itself). The public perception of these objects would also be very poor. Many charities automatically assume that grant revenues do not fall within the scope of VAT. That is not necessarily the case. Where income is contractually owed, the terms of the contract can make the income subject to VAT, as it is collected in return for a service. If this problem is not taken into account at the time of the contract, charities run the risk that HMRC will provide for an assessment of the revenues that they believe would have been subject to VAT.