Can a charity reclaim Gift Aid on donations?

Yes. Registered charities can reclaim Gift Aid from HMRC on eligible donations made by UK taxpayers. For every £1 donated, the charity can reclaim 25p in Gift Aid, boosting the value of the donation by 25%. Donors must have paid at least as much income or capital gains tax as the charity reclaims, and a […]

Do charities need to file accounts with the Charity Commission?

Yes. Charities with an annual income over £25,000 must submit their accounts and annual return to the Charity Commission. Charities with income over £250,000 must prepare accruals accounts, while smaller charities may use receipts and payments accounts. Independent examination or audit may also be required depending on income thresholds.

What accounting standards apply to charity accounts?

Charities in the UK must follow the Charities SORP (Statement of Recommended Practice), which is based on FRS 102. This sets out how income, expenditure, assets, and liabilities should be reported. Compliance ensures transparency and maintains donor and public trust in your organisation.

Can a charity trade commercially and still keep its tax-exempt status?

Primary purpose trading is tax-free. Non-primary purpose trading should be conducted through a trading subsidiary, with profits gift-aided back to the charity to preserve tax exemptions.

What tax reliefs are available to registered charities in the UK?

Charities benefit from Corporation Tax exemption, Gift Aid (25p per £1 donated), up to 80% business rates relief, and VAT reliefs — provided income is applied for charitable purposes.

Does a charity need to file accounts with the Charity Commission?

Charities with income above £25,000 must file with the Charity Commission. Accruals accounts are required above £250,000, and a full audit above £1 million. Deadline is 10 months after year end.

Charities Accounts

Our aim is to help you run your charity efficiently and to make the most of your donations and funding.

Bookkeeping

Accounting and bookkeeping are important, but they don’t have to be a hassle.

VAT

Taxes like value added tax (VAT) are complex and demanding on businesses – so complicated most businesses accidentally overpay or underpay VAT. Simply put, it’s a bit of a hassle.

Company Secretarial

As a business owner, the last thing you need is to use up valuable resources ensuring you’re compliant with the Companies Act.

Company Formation

Registering a company is exciting, but its also a major part in laying the first foundations of your company and there’s more to consider than just buying a cheap ready made company on the internet!

Accounts

We’ll handle your accounts, hitting all your statutory deadlines and giving you the clarity you need to maintain your business.