Charities & Not-for-Profit Plus Blog
Extension of charity definition
Date: Wednesday 2nd May, 2012 | Author: Wendy Bambrick
The Finance Act 2010 is to extend the definition of a charity to include all UK charity tax reliefs and exemptions administered by HMRC, where previously only those claiming gift aid had been included in the definition. This means that those charities which did not claim gift aid, but did receive other HMRC charitable reliefs and exemptions will now need to comply with the fit and proper persons test, which applies to all trustees and managers of a...
Inheritance tax reduction
Date: Monday 30th April, 2012 | Author: Wendy Bambrick
New guidance has been published by HMRC detailing how a reduced rate of inheritance tax (IHT) will be applied in cases where a donation of at least 10% of an estate is made to a registered charity. This new reduced rate will take effect from 6 April 2012, and comes into effect as a result of the Finance Bill 2012 (section 207 and Schedule 32). A new IHT calculator has been launched which will aid in calculating the level of donation required, and the IHT...
Unlimited tax reliefs
Date: Thursday 26th April, 2012 | Author: Wendy Bambrick
The recent Budget announcement regarding a cap on unlimited tax reliefs, while fairly brief, has caused some concern amongst those likely to be affected. The Finance Bill 2013 is likely to include a cap on individual tax reliefs of the greater of 25% of total income, or £50,000, and will come into force from 6 April 2013. The main reliefs likely to be affected are those which are currently unlimited, namely loss reliefs (unless claimed against the same business), charitable donations (including gift aid...
Commission Announces Launch of Charity Review Project
Date: Friday 20th April, 2012 | Author: Wendy Bambrick
A new project has been launched to help charities improve their governance systems. Sam Younger, chief executive of the Charities Commission, announced the project which will give 25 charities the chance to take part in a free review conducted by an ICSA member. This will enable the lucky charities to receive free guidance to help them improve their governance. This, in turn, will help the commission identify areas where new or better advice may be applicable, by anonymously collating...
Charity Commission public meeting to focus on good financial controls
Date: Tuesday 17th April, 2012 | Author: Wendy Bambrick
The Charity Commission, has issued an update inviting charities, trustees and advisors to attend its next public meeting, which will include a discussion on financial controls in charities. The event will be held in Birmingham on Thursday 24 May. During the first half the audience will hear from Charity Commission Chair, Dame Suzi Leather, and Chief Executive, Sam Younger, about the Commission's work, including a question and answer session. This will be followed by an update on the initial...
Government’s cap on tax relief – effect on Charities
Date: Thursday 12th April, 2012 | Author: Louise Giles
According to a survey published on 12 April by The Charities Aid Foundation (CAF) nine out of ten charity executives believe the government's cap on tax relief will discourage donations from major donors. The Chancellor is introducing the measure in order to prevent the wealthiest mitigating the amount of income tax they pay by taking advantage of tax relief on charitable donations. The CAF surveyed 120 charity chief executives and senior executives the survey revealed that 88% have serious concerns...
Charity Commission calls for better protection against fraud
Date: Tuesday 10th April, 2012 | Author: Wendy Bambrick
The Charity Commission has called for charities to better protect themselves against fraud and other financial crime. This is in response to a report published by the National Fraud Authority, which estimates that charities lose on average 1.7% of their annual income to fraud. This would mean a loss of £1.1 billion for the sector in the last financial year. The types of fraud believed to be most common are payment fraud, fraud by employees or volunteers and cyber fraud. These affect...
Academies Annual financial reporting timetable
Date: Wednesday 7th March, 2012 | Author: Louise Giles
This is a reminder of the various deadlines for financial reporting: Return Name Content Filing Deadline GAG2 Budget Projections 31 July Financial Statements Governors and annual accounts for period/year ended August 31 December Abbreviated accounts return Summary income and expenditure account and balance sheet 31 December Financial Management and Governance Return Self assessment of internal procedures 31 December Whole of government accounts return Financial data to 31 March each year Upon request from YPLA The above...
Charities Act 2011 update
Date: Monday 5th March, 2012 | Author: Louise Giles
Don’t forget that the Charities Act 2011 applies to all documents issued on or after 14 March 2012. This is a consolidating act and therefore there are no new provisions. However all references to the Charities Act 1993 or Charities Act 2006 included in documents need to refer to Charities Act 2011 from 14 March 2012.
Charities online registration at the Charities Commission
Date: Friday 2nd March, 2012 | Author: Wendy Bambrick
From 1 March 2012 it has become compulsory to attach governing documents, trustee declaration, bank statement and other supporting documents at the point of submission of an online charity registration. Previously this was advised but not compulsory. It is therefore essential that you have prepared all these documents in advance of completing the online form. This is particularly relevant if there is an urgent deadline for consideration of the application. All details can be found at www.charitycommission.gov.uk where the guidance has...
