Business Rates Relief

10th September 2013

Higher Business Rates for Not for Profit Organisations within East Cambs District.
Since March 2012, East Cambridgeshire District Council (ECDC) has been reviewing it’s policy on granting Discretionary Relief on business rates to give assistance to charitable and not for profit organisations that may have difficulty in paying their rates and are of benefit to the local community, such as village halls. ECDC decided that the previous policy of granting 20% discretionary relief, either to top up the 80% mandatory relief, or to give discretionary relief alone, was too generous to certain organisations who did not really need this assistance:

As a result of this review, it was decided that from the 13-14 financial year onwards, discretionary rates relief (capped at £2,000 pa) would only be granted if the following criteria applied:

  1. No restrictive membership practices.
  2. Evidence of support for disadvantaged groups where the applicant is a community organisation.
  3. Facilities/services must demonstrate benefit to local people/redistribution of majority funding to local communities.
  4. Bar provision in facilities should be an ancillary service (less than 50% of income).
  5. Unrestricted reserves should not exceed £100,000.
  6. Average Annual surpluses (based on the two most recent sets of accounts) should not exceed £26,000.
  7. Various other eligibility criteria must also apply for the application to be eligible.

Local not for profit organisations will now need to review their constitution, surplus retention and a accounting policies to make sure they minimise their future exposure to this local tax.



 
Other items in Charities
 
Oliver Taylor
20th January 2021 Charity funds – which can I use during Covid?

During this unforeseen prolonged period of economic downturn charities may need to re-assess their short to long term aims. Certain planned activities may need to be delayed or even cancelled while more crucial expenditure takes priority. Charities may find it necessary to make use of their reserves to cope, or even just survive, this on-going…

Read More »

Jaimie King
12th October 2020 AGM deadline extension for Charities

Due to Coronavirus, the Charity Commission had previously released guidance allowing Charities to postpone their scheduled AGMs to 30th September 2020, and allowing them to be held digitally.   This guidance has now been updated to allow postponement of AGMs to 30th December 2020.   The updated guidance can be viewed at – https://www.gov.uk/guidance/coronavirus-covid-19-guidance-for-the-charity-sector  

Read More »

Oliver Taylor
12th October 2020 What to do if your charity is facing financial difficulties?

In recent months many charities have found themselves in financial difficulties and an uncertainty of long-term survival, often caused by factors out of their control. Most notably the ongoing Covid-19 outbreak, which has had several knock-on effects such as a reduction in donation income or decreased operating capacity during the tightened lockdown rules. Other external…

Read More »

Jaimie King
4th September 2020 New charity register

The Charity Commission has launched a new public register for charities – making information more transparent.   Using the below link, anyone can search for details of a charity which includes data such as financials, who the trustees are, and whether the charity fundraises from the public.   The Charity Commission wants members of the…

Read More »

Jaimie King
2nd July 2020 Covid Charity update

Many of the charities we support have been concerned about the impact of Coronavirus, and have understandably had many questions with regards to support and how to manage the charity.   Below is some of the latest government guidance (as of 26th June 2020) with regards to some of the most frequently asked questions that…

Read More »

Megan Turner
4th June 2020 Charity Commission: Reporting on matters of material significance

The Charity Commission released updated guidelines in April 2020 for auditors and independent examiners. This was based around the statutory duty to report to the charity regulators in the UK on matters of material significance.   The three main changes in this updated guidance are as follows: confirmation that difficulties in carrying out an audit…

Read More »