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We help donors to give more impactfully and charities to build their resilience so they can do more of their life-changing work.

Personal giving From one-off donations to long-term giving, or designing your personal philanthropic strategy, we work together to help you realise your giving ambitions. Corporate giving You have the vision for making a difference. So do we. We help you plan how to give based on your goals. Services for charities Helping your charity or social enterprise become more resilient. Insights Discover the latest insights for donors and charitable organisations to help create a greater impact About us We are a leading charity, working at the centre of the giving world. We help donors to give more impactfully and charities to build their resilience so they can do more of their life-changing work. Donate  
 
 
 

Personal giving

From one-off donations to long-term giving, or designing your personal philanthropic strategy, we work together to help you realise your giving ambitions.

DISCOVER OUR PERSONAL GIVING SOLUTIONS

Corporate giving

You have the vision for making a difference. So do we. We help you plan how to give based on your goals.

DISCOVER OUR CORPORATE GIVING SOLUTIONS

Services for charities

Helping your charity or social enterprise become more resilient.

DISCOVER HOW WE SUPPORT CHARITIES

Insights

Discover the latest insights for donors and charitable organisations to help create a greater impact

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About us

We are a leading charity, working at the centre of the giving world. We help donors to give more impactfully and charities to build their resilience so they can do more of their life-changing work.

Find out more about CAF
Company Accounts

Changes to fees from 1 May 2026

Changes to our charging structure

In line with changes in changes in VAT case law, CAF is now required to charge VAT on the full amount of its fees. The addition of VAT to our entire fee results in a material increase in total charge to you. Therefore, we have amended our charging structure to absorb some of the increase by: 


  • Reducing the banding thresholds, so that more qualify for lower fees
  • Reducing the fee percentages for some bands
  • Reducing the number of bands from six to five

This means when calculating fees for 2026/27 and comparing them to the 2025/26 charging structure, CAF’s fee will be reduced but an additional 20% VAT will be added, resulting in an overall increased cost to you.

Example: CAF receives a contribution of £10,000

2025/26: £10,000 at 4.5% = £450
2026/27:£10,000 at 4% = £400 + VAT at 20% = £480 

Timings

Every year CAF reviews and implements any changes to its fees on 1 May, we have decided to make this VAT change in line with our annual fee review and provide our clients with at least 30 days’ notice.

Fees now stated as VAT exclusive

We have decided to separate our charging structure from the VAT to provide more clarity.

You will see fees on your account statement as a single line, which will incorporate the fee and the VAT.  

Tax deductibility of corporate donations made to CAF

All donations to CAF remain tax-deductible for corporation tax purposes.

Accessing a breakdown of the charge for VAT recovery

We understand that HMRC rules only allow the recovery of VAT charged on costs related to making VAT taxable supplies (sales) by a business and not donations to charity. We suggest consulting with your finance teams or accountants for further guidance.

Impact on CAF’s income

This change will not increase our fee income. Overall, CAF’s fees will decrease. We have decided not to add VAT to our existing fee schedules. We have reduced the underlying charging band thresholds and some percentage fee rates to make this less expensive to minimise the VAT impact on you. CAF is in effect absorbing some of the extra VAT charge.

Impact on charity recipients

This change will not directly affect charity recipients. Fees are only ever charged on funds coming into CAF rather than on the donation being granted to the charity. However, as per our usual process, the fee will be deducted from your donation before reaching your account, so the fee change will be reflected in the balance you distribute to charity.

Account structure 

If you have multiple accounts that operate on a sub-account model the fee changes will only impact your main account which is where all funds should flow through.

Next steps 

There’s no action you need to take. The new fee schedule will automatically come into effect from 1st May. Any contributions made into your account prior to this date will be charged according to the current fee schedule.

Further questions or support

If you have any questions please contact our customer service team at companyaccounts@cafonline.org or your Corporate Client Adviser directly.