Charity annual returns – changes ahead

27th June 2018

Later this year The Charity Commission will introduce a tailored annual return which will include some new questions which may require preparation in advance.

Overseas expenditure

As these new questions will likely require additional preparation, they will be optional for 2018 but become mandatory for 2019 onwards:

  1. When spending money outside England and Wales, did your charity transfer money outside of the regulated banking system?
  2. What methods to transfer money did the charity use and what was the value?

Options:

  • cash courier
  • other charities or non-governmental organisations and non-profit organisations (NGOs/NPOs)
  • money service business (MSB)
  • informal money transfer systems
  • online payment methods (for example PayPal)
  • other

 

  1. Does the charity have monitoring controls in place to monitor overseas expenditure?
  2. Are the trustees satisfied that the charity’s risk management policy and procedures adequately address the risks to the charity arising from its activities and/or where it operates?

Income from outside the UK

There will now be a breakdown of sources of income from each country a charity receives funds from. Again, this is optional for 2018 but mandatory from 2019 onwards.

Options:

  • overseas governments or quasi government bodies
  • overseas charities, non-governmental organisations or non-profit organisations (NGOs/NPOs)
  • other overseas institutions (for example private company donations)
  • individual donors resident overseas
  • unknown

 

Salary and benefits in charities

The Charity Commission has undertaken research with regards to public trust and confidence and it showed that the public is concerned about high levels of pay in charities. As a result, charities will need to provide more information about salaries to increase accountability.

The annual return in 2018 will ask for a breakdown of salaries across certain income bands, and also the total amount of employee benefits for the highest paid member of staff.

Specific details of the benefits given will not be published on the public register.

 



 
Other items in Blogs
 
Lucy Bayliss
11th April 2019 £10 a day from the 1st May!

If you submitted your tax return after the filing deadline of 31 January, or you still have not submitted your tax return, then you will automatically be fined £100 for missing the deadline.   In February, HMRC announced that they would be delaying issuing the late filing penalty notices due to Brexit. They have now…

Read More »

Matilda Mawson
10th April 2019 Has your claim for marriage allowance transfer been refused?

  HMRC have recently attempted to remove a marriage allowance transfer for a couple, where the transferor had less than the 10% personal allowance unused. This treatment is incorrect as outlined below:   Background to the transfer The marriage allowance transfer was introduced from 5 April 2015 onwards and allows a person to transfer 10%…

Read More »

Lisa Smith
9th April 2019 Digital Records for VAT – HMRC Guidance published

  From 1 April 2019, most businesses with a taxable turnover above £85,000 are required to follow the rules for Making Tax Digital for VAT.  As a result, HMRC has published new guidance on record keeping, which  explains what records a business needs to keep digitally if it has signed up for Making Tax Digital…

Read More »

Ian Piper
9th April 2019 R&D Tax Relief: HMRC Try to Tackle Abuse

  Many companies, not just those in the tech industry, will have benefitted from the generosity of R&D tax relief. Eligible R&D expenditure can be inflated by a notional 230% uplift, and a refund of tax claimed on tax that was never paid in the first place. Perhaps not unsurprisingly, HMRC have identified abuses of…

Read More »

Adrian Mackenzie
25th March 2019 When doing nothing is best

From time to time, stock markets go through periods of uncertainty. This could be down to some poor economic news or perhaps due to a political crisis.  The sharp falls that can be experienced at such times are understandably unsettling for investors. They can even tempt some to change their long-term plan by selling their…

Read More »

Thomas Carter
21st March 2019 Preparing for Brexit – Do you trade within the EU?

Your UK business may need an Economic Operator Registration and Identification (EORI) number if we leave the EU with no deal.   What is an EORI number?   An EORI number is a unique identifying number assigned to individual importers and exporters to track trade between the EU and non-EU countries. It’s used during Customs…

Read More »