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
 
Jonathan Moore
5th September 2019 Gift Aid Guidance Update

HM Revenue & Customs have updated their Gift Aid for charities guidance.   In particular, the tables under sections titled The Benefit Rule, Charity Auctions and Educational School trips have been updated the latter of which will be of interest to charities involved in the running of schools and Educational Trusts.   The updated guidance…

Read More »

Jaimie King
13th August 2019 Charity accounts assurance

Whether unincorporated, a charitable company or a CIO (charitable incorporated organisation), charities are required to have certain levels of assurance over their financial statements depending on their size. The limits are much smaller than companies, meaning that many charities require some sort of external scrutiny. The requirements by size are as follows: Income up to…

Read More »

Jaimie King
19th November 2018 Charities small trading tax exemption to increase

During the Autumn Budget on 29th October 2019, it was announced that the small trading tax exemption limits for Charities is set to increase.   The exemptions apply to Charities who trade outside of their primary purpose. A Charity will not pay tax on trading profits that are a part of the Charity’s primary purpose…

Read More »

Jaimie King
9th November 2018 Gift aid small donations limit to rise

Following the budget on 29th October 2018, the Gift Aid Small Donations Scheme limit has been increased to donations of £30 or less from 6 April 2019. The scheme was introduced for Charities who accept small donations to still claim for Gift Aid despite not collecting the usual declaration paperwork from the donor. This has…

Read More »

Jaimie King
2nd November 2018 Profit distribution to charitable parent

It is common practice for a trading subsidiary company to pay their profits to their charitable parent as a donation under gift aid. This is tax efficient for the subsidiary company, as the profits that have been donated are treated as a donation expense and therefore there is no corporation tax due if paid within…

Read More »

Jaimie King
30th October 2018 Charity serious incident reporting

The Charity Commission is worried about the number of charities not reporting serious incidents or taking a long time to do so. This has perhaps become a concern since the Commission raised a statutory inquiry into Oxfam in February, following allegations of misconduct by staff in Haiti. It is a Charity’s trustee’s responsibility to ensure…

Read More »