A York-based specialist business service claims it has saved more than £150,000 in VAT for charities, not-for-profit organisations and small businesses across York and North Yorkshire in its first 12 months.

HPH chartered accountants, in Bootham, launched the service in May last year, and said beneficiaries have included social ventures, private companies and private schools.

Ian Spencer, a former Customs and Excise VAT inspector and now the firm’s head of VAT services, said that the first-year recovery figure was set to rise further after it emerged a lower rate can apply to some services for certain educational charity clients.

Among the first year’s major savings was for a registered educational charity near York, where specialist advice was given on how it could best manage its properties.

These included a theatre under the control of one charity.

Advice enabled it to avoid a £100,000 unrecoverable, one-off VAT charge, an alternative £84,000 VAT cost spread over the next decade, and achieve its objectives with a single one-off VAT payment of only £500.

VAT advice for another £1 million turnover specialist roofing company near York identified that its services should carry a five per cent VAT rate rather than 20 per cent.

Mr Spencer agreed this with the taxman, as a result of which the business has become more competitive. Its invoices, which average £5,000, carry a £750 VAT saving – or 15 per cent.