By Robyn Rosen, January 6, 2011
Communal leaders have warned that this week's rise in VAT will cost the Jewish charitable sector "hundreds of thousands of pounds".
At south London residential home Nightingale, executive director Leon Smith estimates the VAT increase from 17.5 per cent to 20 per cent will mean an extra £35,000 annual outlay.
"Most people don't realise charities have to pay VAT," he said. "They think we're exempt but it's not the case.